|
Washington
Mutual, Inc.
Selected
Financial Information
(dollars
in millions, except per share data)
(unaudited)
|
||||||||||||||||||||||||||||
|
Quarter
Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
||||||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
2007
|
2006
|
||||||||||||||||||||||
|
PROFITABILITY
|
||||||||||||||||||||||||||||
|
Net
income
|
$
|
210
|
$
|
830
|
$
|
784
|
$
|
1,058
|
$
|
748
|
$
|
1,825
|
$
|
2,501
|
||||||||||||||
|
Net
interest income
|
2,014
|
2,034
|
2,081
|
1,998
|
1,947
|
6,131
|
6,123
|
|||||||||||||||||||||
|
Noninterest
income
|
1,379
|
1,758
|
1,541
|
1,592
|
1,570
|
4,678
|
4,786
|
|||||||||||||||||||||
|
Noninterest
expense
|
2,153
|
2,138
|
2,105
|
2,257
|
2,184
|
6,396
|
6,551
|
|||||||||||||||||||||
|
Diluted
earnings per common share:
|
||||||||||||||||||||||||||||
|
Income
from continuing operations
|
$
|
0.23
|
$
|
0.92
|
$
|
0.86
|
$
|
0.66
|
$
|
0.76
|
$
|
2.02
|
$
|
2.51
|
||||||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
0.44
|
0.01
|
-
|
0.03
|
|||||||||||||||||||||
|
Net
income
|
0.23
|
0.92
|
0.86
|
1.10
|
0.77
|
2.02
|
2.54
|
|||||||||||||||||||||
|
Diluted
weighted average number of
common
shares
outstanding
|
||||||||||||||||||||||||||||
|
(in
thousands)
|
876,002
|
893,090
|
899,706
|
955,817
|
967,376
|
889,534
|
981,997
|
|||||||||||||||||||||
|
Net
interest margin
|
2.86 | % | 2.90 | % | 2.79 | % | 2.58 | % | 2.53 | % | 2.85 | % | 2.64 | % | ||||||||||||||
|
Dividends
declared per common share
|
$
|
0.56
|
$
|
0.55
|
$
|
0.54
|
$
|
0.53
|
$
|
0.52
|
$
|
1.65
|
$
|
1.53
|
||||||||||||||
|
Book
value per common share
(period
end)(1)
|
27.21
|
27.27
|
27.30
|
28.21
|
27.65
|
27.21
|
27.65
|
|||||||||||||||||||||
|
Return
on average assets
|
0.26 | % | 1.05 | % | 0.95 | % | 1.20 | % | 0.86 | % | 0.75 | % | 0.96 | % | ||||||||||||||
|
Return
on average common equity
|
3.45
|
13.74
|
12.99
|
16.03
|
11.47
|
10.10
|
12.68
|
|||||||||||||||||||||
|
Efficiency
ratio(2)(3)
|
63.42
|
56.38
|
58.13
|
62.87
|
62.09
|
59.18
|
60.05
|
|||||||||||||||||||||
|
ASSET
QUALITY
|
||||||||||||||||||||||||||||
|
Nonperforming
assets(4)
to total assets
|
1.65 | % | 1.29 | % | 1.02 | % | 0.80 | % | 0.69 | % | 1.65 | % | 0.69 | % | ||||||||||||||
|
Allowance
as a percentage of loans held
in
portfolio
|
0.80
|
0.73
|
0.71
|
0.72
|
0.64
|
0.80
|
0.64
|
|||||||||||||||||||||
|
CREDIT
PERFORMANCE
|
||||||||||||||||||||||||||||
|
Provision
for loan and lease losses
|
$
|
967
|
$
|
372
|
$
|
234
|
$
|
344
|
$
|
166
|
$
|
1,574
|
$
|
472
|
||||||||||||||
|
Net
charge-offs
|
421
|
271
|
183
|
136
|
154
|
876
|
375
|
|||||||||||||||||||||
|
CAPITAL
ADEQUACY
|
||||||||||||||||||||||||||||
|
Capital
Ratios for WMI:
|
||||||||||||||||||||||||||||
|
Tangible
equity to total tangible assets(5)
|
5.61 | % | 6.07 | % | 5.78 | % | 6.04 | % | 5.86 | % | 5.61 | % | 5.86 | % | ||||||||||||||
|
Total
risk-based capital to total
risk-weighted
assets(6)
|
10.53
|
11.04
|
11.17
|
11.77
|
11.10
|
10.53
|
11.10
|
|||||||||||||||||||||
|
Tier
1 capital to average total assets(6)
|
5.86
|
6.09
|
5.87
|
6.35
|
6.28
|
5.86
|
6.28
|
|||||||||||||||||||||
|
Capital
Ratios for WMB (well-capitalized
minimum)(7):
|
||||||||||||||||||||||||||||
|
Tier
1 capital to adjusted total
assets
(5.00%)
|
6.40
|
7.02
|
6.70
|
6.79
|
6.47
|
6.40
|
6.47
|
|||||||||||||||||||||
|
Adjusted
tier 1 capital to total
risk-weighted
assets (6.00%)
|
7.47
|
8.14
|
7.88
|
8.28
|
8.12
|
7.47
|
8.12
|
|||||||||||||||||||||
|
Total
risk-based capital to total
risk-weighted
assets (10.00%)
|
11.07
|
12.17
|
11.94
|
12.16
|
11.30
|
11.07
|
11.30
|
|||||||||||||||||||||
|
SUPPLEMENTAL
DATA
|
||||||||||||||||||||||||||||
|
Average
balance sheet:
|
||||||||||||||||||||||||||||
|
Total
loans held in portfolio
|
$
|
227,348
|
$
|
216,004
|
$
|
222,617
|
$
|
239,265
|
$
|
242,165
|
$
|
222,007
|
$
|
239,037
|
||||||||||||||
|
Total
interest-earning assets(2)
|
283,263
|
279,836
|
295,700
|
314,784
|
312,827
|
286,221
|
311,300
|
|||||||||||||||||||||
|
Total
assets
|
320,475
|
316,004
|
331,905
|
353,056
|
349,542
|
322,753
|
347,310
|
|||||||||||||||||||||
|
Total
deposits
|
198,649
|
206,765
|
210,764
|
214,801
|
208,912
|
205,348
|
200,131
|
|||||||||||||||||||||
|
Total
stockholders' equity
|
23,994
|
24,436
|
24,407
|
26,700
|
26,147
|
24,278
|
26,308
|
|||||||||||||||||||||
|
Period-end
balance sheet:
|
||||||||||||||||||||||||||||
|
Total
loans held in portfolio, net
|
235,243
|
213,434
|
215,481
|
223,330
|
240,215
|
235,243
|
240,215
|
|||||||||||||||||||||
|
Total
assets
|
330,110
|
312,219
|
319,985
|
346,288
|
348,877
|
330,110
|
348,877
|
|||||||||||||||||||||
|
Total
deposits
|
194,280
|
201,380
|
210,209
|
213,956
|
210,882
|
194,280
|
210,882
|
|||||||||||||||||||||
|
Total
stockholders' equity
|
23,965
|
24,210
|
24,578
|
26,969
|
26,458
|
23,965
|
26,458
|
|||||||||||||||||||||
|
Common
shares outstanding at the
end
of period (in thousands)(8)
|
868,802
|
875,722
|
888,111
|
944,479
|
945,098
|
868,802
|
945,098
|
|||||||||||||||||||||
|
Employees
at end of period
|
49,748
|
49,989
|
49,693
|
49,824
|
51,056
|
49,748
|
51,056
|
|||||||||||||||||||||
|
(1)
|
Excludes
six million shares held in escrow.
|
|
(2)
|
Based
on continuing operations.
|
|
(3)
|
The
efficiency ratio is defined as noninterest expense divided by
total
revenue (net interest income and noninterest income).
|
|
(4)
|
Excludes
nonaccrual loans held for sale.
|
|
(5)
|
Excludes
unrealized net gain/loss on available-for-sale securities and
derivatives,
goodwill and intangible assets (except MSR) and the impact from
the
adoption and application of FASB Statement No. 158, Employers'
Accounting for Defined Benefit Pension and Other Postretirement
Plans. Minority interests of $2.94 billion for September 30,
2007 and June 30, 2007, $2.45 billion for March 31, 2007 and
December 31,
2006 and $1.96 billion for September 30, 2006 are included in
the
numerator.
|
|
(6)
|
The
capital ratios are estimated as if Washington Mutual, Inc. were
a bank
holding company subject to Federal Reserve Board capital
requirements.
|
|
(7)
|
Capital
ratios for Washington Mutual Bank ("WMB") at September 30, 2007
are
preliminary.
|
|
(8)
|
Includes
six million shares held in escrow.
|
|
Washington
Mutual, Inc.
|
|
Consolidated
Statements of Income
|
|
(dollars
in millions, except per share data)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Sept.
30
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
|
2007
|
2007
|
2006
|
2006
|
|||||||||||||||
|
Interest
Income
|
||||||||||||||||||||
|
Loans
held for sale
|
$
|
248
|
$
|
421
|
$
|
562
|
$
|
515
|
$
|
435
|
||||||||||
|
Loans
held in portfolio
|
3,992
|
3,786
|
3,900
|
4,053
|
4,012
|
|||||||||||||||
|
Available-for-sale
securities
|
392
|
351
|
332
|
392
|
379
|
|||||||||||||||
|
Trading
assets
|
108
|
108
|
113
|
102
|
140
|
|||||||||||||||
|
Other
interest and dividend income
|
116
|
82
|
101
|
148
|
139
|
|||||||||||||||
|
Total
interest income
|
4,856
|
4,748
|
5,008
|
5,210
|
5,105
|
|||||||||||||||
|
Interest
Expense
|
||||||||||||||||||||
|
Deposits
|
1,650
|
1,723
|
1,772
|
1,843
|
1,739
|
|||||||||||||||
|
Borrowings
|
1,192
|
991
|
1,155
|
1,369
|
1,419
|
|||||||||||||||
|
Total
interest expense
|
2,842
|
2,714
|
2,927
|
3,212
|
3,158
|
|||||||||||||||
|
Net
interest income
|
2,014
|
2,034
|
2,081
|
1,998
|
1,947
|
|||||||||||||||
|
Provision
for loan and lease losses
|
967
|
372
|
234
|
344
|
166
|
|||||||||||||||
|
Net
interest income after provision for loan and lease losses
|
1,047
|
1,662
|
1,847
|
1,654
|
1,781
|
|||||||||||||||
|
Noninterest
Income
|
||||||||||||||||||||
|
Revenue
from sales and servicing of home mortgage loans
|
161
|
300
|
125
|
164
|
118
|
|||||||||||||||
|
Revenue
from sales and servicing of consumer loans
|
418
|
403
|
443
|
372
|
355
|
|||||||||||||||
|
Depositor
and other retail banking fees
|
740
|
720
|
665
|
692
|
655
|
|||||||||||||||
|
Credit
card fees
|
209
|
183
|
172
|
182
|
165
|
|||||||||||||||
|
Securities
fees and commissions
|
67
|
70
|
60
|
54
|
52
|
|||||||||||||||
|
Insurance
income
|
29
|
29
|
29
|
30
|
31
|
|||||||||||||||
|
Gain
(loss) on trading assets
|
(153 | ) | (145 | ) | (108 | ) | (81 | ) |
68
|
|||||||||||
|
Gain
(loss) from sales of other available-for-sale securities
|
(99 | ) |
7
|
35
|
(1 | ) | (1 | ) | ||||||||||||
|
Other
income
|
7
|
191
|
120
|
180
|
127
|
|||||||||||||||
|
Total
noninterest income
|
1,379
|
1,758
|
1,541
|
1,592
|
1,570
|
|||||||||||||||
|
Noninterest
Expense
|
||||||||||||||||||||
|
Compensation
and benefits
|
910
|
977
|
1,002
|
945
|
939
|
|||||||||||||||
|
Occupancy
and equipment
|
371
|
354
|
376
|
476
|
408
|
|||||||||||||||
|
Telecommunications
and outsourced information services
|
135
|
132
|
129
|
133
|
142
|
|||||||||||||||
|
Depositor
and other retail banking losses
|
71
|
58
|
61
|
64
|
57
|
|||||||||||||||
|
Advertising
and promotion
|
125
|
113
|
98
|
107
|
124
|
|||||||||||||||
|
Professional
fees
|
52
|
55
|
38
|
89
|
57
|
|||||||||||||||
|
Other
expense
|
489
|
449
|
401
|
443
|
457
|
|||||||||||||||
|
Total
noninterest expense
|
2,153
|
2,138
|
2,105
|
2,257
|
2,184
|
|||||||||||||||
|
Minority
interest expense
|
53
|
42
|
43
|
34
|
34
|
|||||||||||||||
|
Income
from continuing operations before income taxes
|
220
|
1,240
|
1,240
|
955
|
1,133
|
|||||||||||||||
|
Income
taxes
|
10
|
410
|
456
|
315
|
394
|
|||||||||||||||
|
Income
from continuing operations
|
210
|
830
|
784
|
640
|
739
|
|||||||||||||||
|
Discontinued
Operations(1)
|
||||||||||||||||||||
|
Income
from discontinued operations before income taxes
|
-
|
-
|
-
|
2
|
14
|
|||||||||||||||
|
Gain
on disposition of discontinued operations
|
-
|
-
|
-
|
667
|
-
|
|||||||||||||||
|
Income
taxes
|
-
|
-
|
-
|
251
|
5
|
|||||||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
418
|
9
|
|||||||||||||||
|
Net
Income
|
$
|
210
|
$
|
830
|
$
|
784
|
$
|
1,058
|
$
|
748
|
||||||||||
|
Net
Income Available to Common Stockholders
|
$
|
202
|
$
|
822
|
$
|
777
|
$
|
1,050
|
$
|
748
|
||||||||||
|
Basic
Earnings Per Common Share:
|
||||||||||||||||||||
|
Income
from continuing operations
|
$
|
0.24
|
$
|
0.95
|
$
|
0.89
|
$
|
0.68
|
$
|
0.78
|
||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
0.45
|
0.01
|
|||||||||||||||
|
Net
Income
|
0.24
|
0.95
|
0.89
|
1.13
|
0.79
|
|||||||||||||||
|
Diluted
Earnings Per Common Share:
|
||||||||||||||||||||
|
Income
from continuing operations
|
$
|
0.23
|
$
|
0.92
|
$
|
0.86
|
$
|
0.66
|
$
|
0.76
|
||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
0.44
|
0.01
|
|||||||||||||||
|
Net
Income
|
0.23
|
0.92
|
0.86
|
1.10
|
0.77
|
|||||||||||||||
|
Dividends
declared per common share
|
0.56
|
0.55
|
0.54
|
0.53
|
0.52
|
|||||||||||||||
|
Basic
weighted average number of common shares outstanding
(in
thousands)
|
857,005
|
868,968
|
874,816
|
931,484
|
941,898
|
|||||||||||||||
|
Diluted
weighted average number of common shares outstanding
(in
thousands)
|
876,002
|
893,090
|
899,706
|
955,817
|
967,376
|
|||||||||||||||
|
(1)
|
Represents
WM Advisors, Inc., the Company's retail mutual fund management
business,
which was sold in the fourth quarter of 2006.
|
|
Washington
Mutual, Inc.
|
|
Consolidated
Statements of Income
|
|
(dollars
in millions, except per share data)
|
|
(unaudited)
|
|
Nine
Months Ended
|
||||||||
|
Sept.
30,
|
Sept.
30,
|
|||||||
|
2007
|
2006
|
|||||||
|
Interest
Income
|
||||||||
|
Loans
held for sale
|
$
|
1,232
|
$
|
1,292
|
||||
|
Loans
held in portfolio
|
11,678
|
11,480
|
||||||
|
Available-for-sale
securities
|
1,075
|
1,068
|
||||||
|
Trading
assets
|
329
|
503
|
||||||
|
Other
interest and dividend income
|
299
|
354
|
||||||
|
Total
interest income
|
14,613
|
14,697
|
||||||
|
Interest
Expense
|
||||||||
|
Deposits
|
5,145
|
4,420
|
||||||
|
Borrowings
|
3,337
|
4,154
|
||||||
|
Total
interest expense
|
8,482
|
8,574
|
||||||
|
Net
interest income
|
6,131
|
6,123
|
||||||
|
Provision
for loan and lease losses
|
1,574
|
472
|
||||||
|
Net
interest income after provision for loan and lease losses
|
4,557
|
5,651
|
||||||
|
Noninterest
Income
|
||||||||
|
Revenue
from sales and servicing of home mortgage loans
|
586
|
603
|
||||||
|
Revenue
from sales and servicing of consumer loans
|
1,264
|
1,155
|
||||||
|
Depositor
and other retail banking fees
|
2,125
|
1,875
|
||||||
|
Credit
card fees
|
564
|
456
|
||||||
|
Securities
fees and commissions
|
197
|
161
|
||||||
|
Insurance
income
|
87
|
97
|
||||||
|
Loss
on trading assets
|
(406 | ) | (74 | ) | ||||
|
Loss
from sales of other available-for-sale securities
|
(58 | ) | (8 | ) | ||||
|
Other
income
|
319
|
521
|
||||||
|
Total
noninterest income
|
4,678
|
4,786
|
||||||
|
Noninterest
Expense
|
||||||||
|
Compensation
and benefits
|
2,889
|
2,992
|
||||||
|
Occupancy
and equipment
|
1,102
|
1,235
|
||||||
|
Telecommunications
and outsourced information services
|
396
|
421
|
||||||
|
Depositor
and other retail banking losses
|
190
|
165
|
||||||
|
Advertising
and promotion
|
337
|
335
|
||||||
|
Professional
fees
|
145
|
138
|
||||||
|
Other
expense
|
1,337
|
1,265
|
||||||
|
Total
noninterest expense
|
6,396
|
6,551
|
||||||
|
Minority
interest expense
|
138
|
71
|
||||||
|
Income
from continuing operations before income taxes
|
2,701
|
3,815
|
||||||
|
Income
taxes
|
876
|
1,341
|
||||||
|
Income
from continuing operations
|
1,825
|
2,474
|
||||||
|
Discontinued
Operations(1)
|
||||||||
|
Income
from discontinued operations before income taxes
|
-
|
42
|
||||||
|
Income
taxes
|
-
|
15
|
||||||
|
Income
from discontinued operations
|
-
|
27
|
||||||
|
Net
Income
|
$
|
1,825
|
$
|
2,501
|
||||
|
Net
Income Available to Common Stockholders
|
$
|
1,802
|
$
|
2,501
|
||||
|
Basic
Earnings Per Common Share:
|
||||||||
|
Income
from continuing operations
|
$
|
2.08
|
$
|
2.59
|
||||
|
Income
from discontinued operations
|
-
|
0.03
|
||||||
|
Net
Income
|
2.08
|
2.62
|
||||||
|
Diluted
Earnings Per Common Share:
|
||||||||
|
Income
from continuing operations
|
$
|
2.02
|
$
|
2.51
|
||||
|
Income
from discontinued operations
|
-
|
0.03
|
||||||
|
Net
Income
|
2.02
|
2.54
|
||||||
|
Dividends
declared per common share
|
1.65
|
1.53
|
||||||
|
Basic
weighted average number of common shares outstanding (in
thousands)
|
866,864
|
954,062
|
||||||
|
Diluted
weighted average number of common shares outstanding (in
thousands)
|
889,534
|
981,997
|
||||||
|
(1)
|
Represents
WM Advisors, Inc., the Company's retail mutual fund management
business,
which was sold in the fourth quarter of
2006.
|
|
Washington
Mutual, Inc.
|
|
Consolidated
Statements of Financial Condition
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Assets
|
||||||||||||||||||||
|
Cash
and cash equivalents
|
$
|
11,370
|
$
|
4,167
|
$
|
4,047
|
$
|
6,948
|
$
|
6,649
|
||||||||||
|
Federal
funds sold and securities purchased under agreements to
resell
|
4,042
|
3,267
|
8,279
|
3,743
|
5,102
|
|||||||||||||||
|
Trading
assets
|
3,797
|
5,534
|
5,290
|
4,434
|
5,391
|
|||||||||||||||
|
Available-for-sale
securities, total amortized cost of $28,725, $28,934,
|
||||||||||||||||||||
|
$22,921,
$25,073 and $29,136:
|
||||||||||||||||||||
|
Mortgage-backed
securities
|
20,562
|
20,393
|
16,543
|
18,601
|
22,847
|
|||||||||||||||
|
Investment
securities
|
7,844
|
7,947
|
6,296
|
6,377
|
6,170
|
|||||||||||||||
|
Total
available-for-sale securities
|
28,406
|
28,340
|
22,839
|
24,978
|
29,017
|
|||||||||||||||
|
Loans
held for sale
|
7,586
|
19,327
|
26,874
|
44,970
|
23,720
|
|||||||||||||||
|
Loans
held in portfolio
|
237,132
|
214,994
|
217,021
|
224,960
|
241,765
|
|||||||||||||||
|
Allowance
for loan and lease losses
|
(1,889 | ) | (1,560 | ) | (1,540 | ) | (1,630 | ) | (1,550 | ) | ||||||||||
|
Loans
held in portfolio, net
|
235,243
|
213,434
|
215,481
|
223,330
|
240,215
|
|||||||||||||||
|
Investment
in Federal Home Loan Banks
|
2,808
|
1,596
|
2,230
|
2,705
|
3,013
|
|||||||||||||||
|
Mortgage
servicing rights
|
6,794
|
7,231
|
6,507
|
6,193
|
6,288
|
|||||||||||||||
|
Goodwill
|
9,062
|
9,056
|
9,052
|
9,050
|
8,368
|
|||||||||||||||
|
Other
assets
|
21,002
|
20,267
|
19,386
|
19,937
|
21,114
|
|||||||||||||||
|
Total
assets
|
$
|
330,110
|
$
|
312,219
|
$
|
319,985
|
$
|
346,288
|
$
|
348,877
|
||||||||||
|
Liabilities
|
||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||
|
Noninterest-bearing
deposits
|
$
|
31,341
|
$
|
33,557
|
$
|
34,367
|
$
|
33,386
|
$
|
34,667
|
||||||||||
|
Interest-bearing
deposits
|
162,939
|
167,823
|
175,842
|
180,570
|
176,215
|
|||||||||||||||
|
Total
deposits
|
194,280
|
201,380
|
210,209
|
213,956
|
210,882
|
|||||||||||||||
|
Federal
funds purchased and commercial paper
|
2,482
|
3,390
|
563
|
4,778
|
5,282
|
|||||||||||||||
|
Securities
sold under agreements to repurchase
|
4,732
|
9,357
|
8,323
|
11,953
|
13,665
|
|||||||||||||||
|
Advances
from Federal Home Loan Banks
|
52,530
|
21,412
|
24,735
|
44,297
|
47,247
|
|||||||||||||||
|
Other
borrowings
|
40,887
|
40,313
|
39,430
|
32,852
|
33,883
|
|||||||||||||||
|
Other
liabilities
|
8,289
|
9,212
|
9,694
|
9,035
|
9,501
|
|||||||||||||||
|
Minority
interests
|
2,945
|
2,945
|
2,453
|
2,448
|
1,959
|
|||||||||||||||
|
Total
liabilities
|
306,145
|
288,009
|
295,407
|
319,319
|
322,419
|
|||||||||||||||
|
Stockholders'
equity
|
||||||||||||||||||||
|
Preferred
stock
|
492
|
492
|
492
|
492
|
492
|
|||||||||||||||
|
Capital
surplus - common stock
|
2,575
|
2,715
|
3,121
|
5,825
|
5,761
|
|||||||||||||||
|
Accumulated
other comprehensive loss
|
(390 | ) | (568 | ) | (268 | ) | (287 | ) | (180 | ) | ||||||||||
|
Retained
earnings
|
21,288
|
21,571
|
21,233
|
20,939
|
20,385
|
|||||||||||||||
|
Total
stockholders' equity
|
23,965
|
24,210
|
24,578
|
26,969
|
26,458
|
|||||||||||||||
|
Total
liabilities and stockholders' equity
|
$
|
330,110
|
$
|
312,219
|
$
|
319,985
|
$
|
346,288
|
$
|
348,877
|
||||||||||
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Stockholders'
Equity Rollforward
|
||||||||||||||||||||
|
Balance,
beginning of period
|
$
|
24,210
|
$
|
24,578
|
$
|
26,969
|
$
|
26,458
|
$
|
26,131
|
||||||||||
|
Net
income
|
210
|
830
|
784
|
1,058
|
748
|
|||||||||||||||
|
Cumulative
effect from the adoption of new accounting pronouncements
|
-
|
-
|
(6 | )(1) | (157 | )(2) |
-
|
|||||||||||||
|
Other
comprehensive income (loss), net of income taxes
|
177
|
(300 | ) |
19
|
50
|
419
|
||||||||||||||
|
Cash
dividends declared on common stock
|
(485 | ) | (484 | ) | (476 | ) | (496 | ) | (497 | ) | ||||||||||
|
Cash
dividends declared on preferred stock
|
(8 | ) | (8 | ) | (7 | ) | (8 | ) |
-
|
|||||||||||
|
Common
stock repurchased and retired(3)
|
(199 | ) | (500 | ) | (2,797 | ) |
-
|
(930 | ) | |||||||||||
|
Common
stock issued
|
60
|
94
|
92
|
64
|
95
|
|||||||||||||||
|
Preferred
stock issued
|
-
|
-
|
-
|
-
|
492
|
|||||||||||||||
|
Balance,
end of period
|
$
|
23,965
|
$
|
24,210
|
$
|
24,578
|
$
|
26,969
|
$
|
26,458
|
||||||||||
|
(1)
|
As
of January 1, 2007, the Company adopted FASB Interpretation No.
48,
Accounting for Uncertainty in Income Taxes.
|
|
(2)
|
On
December 31, 2006, the Company adopted Statement of Financial Accounting
Standards ("Statement") No. 158, Employers' Accounting for Defined
Benefit Pension and Other Postretirement Plans. Statement
No. 158 requires an entity to recognize the overfunded or underfunded
status of its defined benefit postretirement plans as an asset
or
liability in its statement of financial condition and to recognize
changes, through comprehensive income, in that funded status in
the year
in which the changes occur. The cumulative effects, net of
income taxes, resulted in a $274 million decrease to December 31,
2006
other assets and a $117 million decrease to December 31, 2006 other
liabilities.
|
|
(3)
|
The
Company repurchased 7.2 million, 13.5 million, 61.4 million,
1.7 million and 18.8 million shares of its common stock in the
three
months ended September 30, 2007, June 30, 2007, March 31, 2007,
December
31, 2006 and September 30, 2006. At September 30, 2007, the
total remaining common stock repurchase authority was 47.5 million
shares.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
||||||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
2007
|
2006
|
||||||||||||||||||||||
|
RETAIL
BANKING GROUP
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
1,302
|
$
|
1,283
|
$
|
1,275
|
$
|
1,239
|
$
|
1,260
|
$
|
3,861
|
$
|
3,929
|
||||||||||||||
|
Provision
for loan and lease losses
|
318
|
91
|
62
|
47
|
53
|
471
|
120
|
|||||||||||||||||||||
|
Noninterest
income
|
833
|
819
|
751
|
774
|
738
|
2,404
|
2,140
|
|||||||||||||||||||||
|
Inter-segment
revenue
|
14
|
21
|
22
|
17
|
17
|
57
|
47
|
|||||||||||||||||||||
|
Noninterest
expense
|
1,155
|
1,137
|
1,074
|
1,100
|
1,079
|
3,367
|
3,268
|
|||||||||||||||||||||
|
Income
from continuing operations
before
income taxes
|
676
|
895
|
912
|
883
|
883
|
2,484
|
2,728
|
|||||||||||||||||||||
|
Income
taxes
|
223
|
336
|
342
|
337
|
337
|
901
|
1,043
|
|||||||||||||||||||||
|
Income
from continuing operations
|
453
|
559
|
570
|
546
|
546
|
1,583
|
1,685
|
|||||||||||||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
12
|
9
|
-
|
27
|
|||||||||||||||||||||
|
Net
income
|
$
|
453
|
$
|
559
|
$
|
570
|
$
|
558
|
$
|
555
|
$
|
1,583
|
$
|
1,712
|
||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Efficiency
ratio
|
53.75 | % | 53.56 | % | 52.43 | % | 54.22 | % | 53.55 | % | 53.26 | % | 53.44 | % | ||||||||||||||
|
Average
loans
|
$
|
147,357
|
$
|
149,716
|
$
|
155,206
|
$
|
172,013
|
$
|
180,829
|
$
|
150,731
|
$
|
179,216
|
||||||||||||||
|
Average
assets
|
157,196
|
159,518
|
165,047
|
182,240
|
191,288
|
160,559
|
189,587
|
|||||||||||||||||||||
|
Average
deposits:
|
||||||||||||||||||||||||||||
|
Checking
deposits:
|
||||||||||||||||||||||||||||
|
Noninterest
bearing
|
22,860
|
23,107
|
22,331
|
21,873
|
21,440
|
22,768
|
21,072
|
|||||||||||||||||||||
|
Interest
bearing
|
28,406
|
30,282
|
31,739
|
33,010
|
34,792
|
30,130
|
37,531
|
|||||||||||||||||||||
|
Total
checking deposits
|
51,266
|
53,389
|
54,070
|
54,883
|
56,232
|
52,898
|
58,603
|
|||||||||||||||||||||
|
Savings
and money market deposits
|
43,524
|
43,814
|
43,103
|
41,442
|
38,317
|
43,482
|
37,967
|
|||||||||||||||||||||
|
Time
deposits
|
50,131
|
48,049
|
46,857
|
47,188
|
45,405
|
48,358
|
42,706
|
|||||||||||||||||||||
|
Average
deposits
|
144,921
|
145,252
|
144,030
|
143,513
|
139,954
|
144,738
|
139,276
|
|||||||||||||||||||||
|
Loan
volume
|
6,469
|
5,753
|
5,079
|
5,331
|
4,965
|
17,301
|
16,274
|
|||||||||||||||||||||
|
Employees
at end of period
|
28,263
|
28,131
|
27,837
|
27,629
|
27,998
|
28,263
|
27,998
|
|||||||||||||||||||||
|
CARD
SERVICES GROUP
|
||||||||||||||||||||||||||||
|
Managed
basis(1)
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
689
|
$
|
660
|
$
|
653
|
$
|
664
|
$
|
633
|
$
|
2,004
|
$
|
1,866
|
||||||||||||||
|
Provision
for loan and lease losses
|
611
|
523
|
388
|
555
|
345
|
1,523
|
1,092
|
|||||||||||||||||||||
|
Noninterest
income
|
399
|
393
|
474
|
451
|
343
|
1,267
|
1,076
|
|||||||||||||||||||||
|
Inter-segment
expense
|
5
|
5
|
4
|
2
|
2
|
14
|
4
|
|||||||||||||||||||||
|
Noninterest
expense
|
320
|
300
|
325
|
316
|
294
|
946
|
884
|
|||||||||||||||||||||
|
Income
before income taxes
|
152
|
225
|
410
|
242
|
335
|
788
|
962
|
|||||||||||||||||||||
|
Income
taxes
|
50
|
84
|
154
|
92
|
128
|
288
|
368
|
|||||||||||||||||||||
|
Net
income
|
$
|
102
|
$
|
141
|
$
|
256
|
$
|
150
|
$
|
207
|
$
|
500
|
$
|
594
|
||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Efficiency
ratio
|
29.56 | % | 28.68 | % | 28.96 | % | 28.40 | % | 30.16 | % | 29.06 | % | 30.08 | % | ||||||||||||||
|
Average
loans
|
$
|
25,718
|
$
|
24,234
|
$
|
23,604
|
$
|
22,875
|
$
|
21,706
|
$
|
24,527
|
$
|
20,762
|
||||||||||||||
|
Average
assets
|
28,206
|
26,762
|
26,039
|
25,472
|
24,236
|
27,010
|
23,354
|
|||||||||||||||||||||
|
Employees
at end of period
|
2,878
|
2,827
|
2,579
|
2,611
|
2,667
|
2,878
|
2,667
|
|||||||||||||||||||||
|
Securitization
adjustments
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
(456 | ) |
$
|
(459 | ) |
$
|
(414 | ) |
$
|
(437 | ) |
$
|
(411 | ) |
$
|
(1,330 | ) |
$
|
(1,249 | ) | |||||||
|
Provision
for loan and lease losses
|
(288 | ) | (294 | ) | (282 | ) | (280 | ) | (220 | ) | (865 | ) | (662 | ) | ||||||||||||||
|
Noninterest
income
|
168
|
165
|
132
|
157
|
191
|
465
|
587
|
|||||||||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Average
loans
|
(14,488 | ) | (13,888 | ) | (12,507 | ) | (12,811 | ) | (12,169 | ) | (13,635 | ) | (11,947 | ) | ||||||||||||||
|
Average
assets
|
(12,841 | ) | (12,287 | ) | (10,961 | ) | (11,035 | ) | (10,330 | ) | (12,036 | ) | (10,101 | ) | ||||||||||||||
|
Adjusted
basis
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
233
|
$
|
201
|
$
|
239
|
$
|
227
|
$
|
222
|
$
|
674
|
$
|
617
|
||||||||||||||
|
Provision
for loan and lease losses
|
323
|
229
|
106
|
275
|
125
|
658
|
430
|
|||||||||||||||||||||
|
Noninterest
income
|
567
|
558
|
606
|
608
|
534
|
1,732
|
1,663
|
|||||||||||||||||||||
|
Inter-segment
expense
|
5
|
5
|
4
|
2
|
2
|
14
|
4
|
|||||||||||||||||||||
|
Noninterest
expense
|
320
|
300
|
325
|
316
|
294
|
946
|
884
|
|||||||||||||||||||||
|
Income
before income taxes
|
152
|
225
|
410
|
242
|
335
|
788
|
962
|
|||||||||||||||||||||
|
Income
taxes
|
50
|
84
|
154
|
92
|
128
|
288
|
368
|
|||||||||||||||||||||
|
Net
income
|
$
|
102
|
$
|
141
|
$
|
256
|
$
|
150
|
$
|
207
|
$
|
500
|
$
|
594
|
||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Average
loans
|
$
|
11,230
|
$
|
10,346
|
$
|
11,097
|
$
|
10,064
|
$
|
9,537
|
$
|
10,892
|
$
|
8,815
|
||||||||||||||
|
Average
assets
|
15,365
|
14,475
|
15,078
|
14,437
|
13,906
|
14,974
|
13,253
|
|||||||||||||||||||||
|
(This
table is continued on "WM-7.")
|
|
(1)
|
The
managed basis presentation treats securitized and sold credit card
receivables as if they were still on the balance sheet. The Company
uses
this basis in assessing the overall performance of this operating
segment.
The managed basis presentation of the Card Services Group is derived
by
adjusting the GAAP financial information to add back securitized
loan
balances and the related interest, fee income and provision for
credit
losses. Such adjustments are eliminated as securitization
adjustments when reporting GAAP
results.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||
|
(This
table is continued from "WM-6.")
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
|||||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
2007
|
2006
|
||||||||||||||||||||||
|
COMMERCIAL
GROUP
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
193
|
$
|
195
|
$
|
200
|
$
|
189
|
$
|
159
|
$
|
588
|
$
|
488
|
||||||||||||||
|
Provision
for loan and lease losses
|
12
|
2
|
(10 | ) | (69 | ) | (2 | ) |
5
|
(12 | ) | |||||||||||||||||
|
Noninterest
income
|
(34 | ) |
62
|
14
|
40
|
25
|
41
|
54
|
||||||||||||||||||||
|
Noninterest
expense
|
67
|
74
|
74
|
72
|
60
|
214
|
184
|
|||||||||||||||||||||
|
Income
before income taxes
|
80
|
181
|
150
|
226
|
126
|
410
|
370
|
|||||||||||||||||||||
|
Income
taxes
|
26
|
68
|
56
|
86
|
48
|
150
|
141
|
|||||||||||||||||||||
|
Net
income
|
$
|
54
|
$
|
113
|
$
|
94
|
$
|
140
|
$
|
78
|
$
|
260
|
$
|
229
|
||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Efficiency
ratio
|
41.88 | % | 28.77 | % | 34.52 | % | 31.49 | % | 32.21 | % | 34.03 | % | 33.92 | % | ||||||||||||||
|
Average
loans
|
$
|
38,333
|
$
|
38,789
|
$
|
38,641
|
$
|
37,552
|
$
|
32,414
|
$
|
38,586
|
$
|
31,774
|
||||||||||||||
|
Average
assets
|
40,661
|
41,181
|
41,001
|
40,216
|
34,560
|
40,946
|
33,997
|
|||||||||||||||||||||
|
Average
deposits
|
7,851
|
6,160
|
3,762
|
3,609
|
2,323
|
5,939
|
2,274
|
|||||||||||||||||||||
|
Loan
volume
|
4,054
|
4,348
|
3,671
|
4,019
|
3,104
|
12,073
|
8,835
|
|||||||||||||||||||||
|
Employees
at end of period
|
1,421
|
1,404
|
1,351
|
1,409
|
1,242
|
1,421
|
1,242
|
|||||||||||||||||||||
|
HOME
LOANS GROUP
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
183
|
$
|
215
|
$
|
245
|
$
|
273
|
$
|
276
|
$
|
644
|
$
|
904
|
||||||||||||||
|
Provision
for loan and lease losses
|
323
|
101
|
49
|
47
|
84
|
474
|
141
|
|||||||||||||||||||||
|
Noninterest
income
|
184
|
391
|
162
|
126
|
314
|
736
|
1,176
|
|||||||||||||||||||||
|
Inter-segment
expense
|
9
|
16
|
18
|
15
|
15
|
43
|
43
|
|||||||||||||||||||||
|
Noninterest
expense
|
554
|
548
|
521
|
534
|
528
|
1,622
|
1,765
|
|||||||||||||||||||||
|
Income
(loss) before income taxes
|
(519 | ) | (59 | ) | (181 | ) | (197 | ) | (37 | ) | (759 | ) |
131
|
|||||||||||||||
|
Income
taxes (benefit)
|
(171 | ) | (22 | ) | (68 | ) | (75 | ) | (14 | ) | (261 | ) |
50
|
|||||||||||||||
|
Net
income (loss)
|
$
|
(348 | ) |
$
|
(37 | ) |
$
|
(113 | ) |
$
|
(122 | ) |
$
|
(23 | ) |
$
|
(498 | ) |
$
|
81
|
||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Efficiency
ratio
|
154.63 | % | 92.82 | % | 133.90 | % | 138.93 | % | 92.00 | % | 121.30 | % | 86.65 | % | ||||||||||||||
|
Average
loans
|
$
|
43,737
|
$
|
43,312
|
$
|
53,254
|
$
|
51,048
|
$
|
45,407
|
$
|
46,733
|
$
|
46,419
|
||||||||||||||
|
Average
assets
|
61,068
|
60,314
|
71,367
|
71,503
|
70,563
|
64,212
|
73,199
|
|||||||||||||||||||||
|
Average
deposits
|
13,745
|
17,506
|
16,767
|
19,788
|
20,659
|
15,995
|
19,120
|
|||||||||||||||||||||
|
Loan
volume
|
26,434
|
35,857
|
34,022
|
37,532
|
41,241
|
96,312
|
134,037
|
|||||||||||||||||||||
|
Employees
at end of period
|
12,167
|
12,666
|
12,952
|
12,941
|
13,857
|
12,167
|
13,857
|
|||||||||||||||||||||
|
CORPORATE
SUPPORT/TREASURY AND OTHER
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income (expense)
|
$
|
(35 | ) |
$
|
2
|
$
|
(15 | ) |
$
|
(64 | ) |
$
|
(107 | ) |
$
|
(49 | ) |
$
|
(210 | ) | ||||||||
|
Provision
for loan and lease losses
|
(9 | ) | (51 | ) |
27
|
44
|
(94 | ) | (34 | ) | (207 | ) | ||||||||||||||||
|
Noninterest
income
|
(108 | ) |
43
|
81
|
142
|
75
|
16
|
137
|
||||||||||||||||||||
|
Noninterest
expense
|
57
|
79
|
111
|
235
|
223
|
247
|
450
|
|||||||||||||||||||||
|
Minority
interest expense
|
53
|
42
|
43
|
34
|
34
|
138
|
71
|
|||||||||||||||||||||
|
Loss
from continuing operations before
income
taxes
|
(244 | ) | (25 | ) | (115 | ) | (235 | ) | (195 | ) | (384 | ) | (387 | ) | ||||||||||||||
|
Income
taxes (benefit)
|
(58 | ) | (40 | ) | (71 | ) | (103 | ) | (90 | ) | (170 | ) | (197 | ) | ||||||||||||||
|
Loss
from continuing operations
|
(186 | ) |
15
|
(44 | ) | (132 | ) | (105 | ) | (214 | ) | (190 | ) | |||||||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
406
|
-
|
-
|
-
|
|||||||||||||||||||||
|
Net
income (loss)
|
$
|
(186 | ) |
$
|
15
|
$
|
(44 | ) |
$
|
274
|
$
|
(105 | ) |
$
|
(214 | ) |
$
|
(190 | ) | |||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Average
loans
|
$
|
1,420
|
$
|
1,367
|
$
|
1,345
|
$
|
1,310
|
$
|
1,245
|
$
|
1,377
|
$
|
1,063
|
||||||||||||||
|
Average
assets
|
47,570
|
41,817
|
40,891
|
46,233
|
40,825
|
43,450
|
38,865
|
|||||||||||||||||||||
|
Average
deposits
|
32,132
|
37,847
|
46,205
|
47,891
|
45,976
|
38,676
|
39,461
|
|||||||||||||||||||||
|
Loan
volume
|
113
|
72
|
107
|
144
|
58
|
292
|
163
|
|||||||||||||||||||||
|
Employees
at end of period
|
5,019
|
4,961
|
4,974
|
5,234
|
5,292
|
5,019
|
5,292
|
|||||||||||||||||||||
|
(This
table is continued on
"WM-8.")
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
Nine
Months Ended
|
|||||||||||||||||||||||||||
|
(This
table is continued from "WM-7.")
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
Sept.
30,
|
Sept.
30,
|
|||||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
2007
|
2006
|
||||||||||||||||||||||
|
RECONCILING
ADJUSTMENTS
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income(1)
|
$
|
138
|
$
|
138
|
$
|
137
|
$
|
134
|
$
|
137
|
$
|
413
|
$
|
395
|
||||||||||||||
|
Noninterest
income (expense)(2)
|
(63 | ) | (115 | ) | (73 | ) | (98 | ) | (116 | ) | (251 | ) | (384 | ) | ||||||||||||||
|
Income
before income taxes
|
75
|
23
|
64
|
36
|
21
|
162
|
11
|
|||||||||||||||||||||
|
Income
taxes (benefit)(3)
|
(60 | ) | (16 | ) |
43
|
(22 | ) | (15 | ) | (32 | ) | (64 | ) | |||||||||||||||
|
Net
income
|
$
|
135
|
$
|
39
|
$
|
21
|
$
|
58
|
$
|
36
|
$
|
194
|
$
|
75
|
||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Average
loans(4)
|
$
|
(1,385 | ) |
$
|
(1,301 | ) |
$
|
(1,479 | ) |
$
|
(1,573 | ) |
$
|
(1,600 | ) |
$
|
(1,388 | ) |
$
|
(1,591 | ) | |||||||
|
Average
assets(4)
|
(1,385 | ) | (1,301 | ) | (1,479 | ) | (1,573 | ) | (1,600 | ) | (1,388 | ) | (1,591 | ) | ||||||||||||||
|
TOTAL
CONSOLIDATED
|
||||||||||||||||||||||||||||
|
Condensed
income statement:
|
||||||||||||||||||||||||||||
|
Net
interest income
|
$
|
2,014
|
$
|
2,034
|
$
|
2,081
|
$
|
1,998
|
$
|
1,947
|
$
|
6,131
|
$
|
6,123
|
||||||||||||||
|
Provision
for loan and lease losses
|
967
|
372
|
234
|
344
|
166
|
1,574
|
472
|
|||||||||||||||||||||
|
Noninterest
income
|
1,379
|
1,758
|
1,541
|
1,592
|
1,570
|
4,678
|
4,786
|
|||||||||||||||||||||
|
Noninterest
expense
|
2,153
|
2,138
|
2,105
|
2,257
|
2,184
|
6,396
|
6,551
|
|||||||||||||||||||||
|
Minority
interest expense
|
53
|
42
|
43
|
34
|
34
|
138
|
71
|
|||||||||||||||||||||
|
Income
from continuing operations before
income
taxes
|
220
|
1,240
|
1,240
|
955
|
1,133
|
2,701
|
3,815
|
|||||||||||||||||||||
|
Income
taxes
|
10
|
410
|
456
|
315
|
394
|
876
|
1,341
|
|||||||||||||||||||||
|
Income
from continuing operations
|
210
|
830
|
784
|
640
|
739
|
1,825
|
2,474
|
|||||||||||||||||||||
|
Income
from discontinued operations
|
-
|
-
|
-
|
418
|
9
|
-
|
27
|
|||||||||||||||||||||
|
Net
income
|
$
|
210
|
$
|
830
|
$
|
784
|
$
|
1,058
|
$
|
748
|
$
|
1,825
|
$
|
2,501
|
||||||||||||||
|
Performance
and other data:
|
||||||||||||||||||||||||||||
|
Efficiency
ratio
|
63.42 | % | 56.38 | % | 58.13 | % | 62.87 | % | 62.09 | % | 59.18 | % | 60.05 | % | ||||||||||||||
|
Average
loans
|
$
|
240,692
|
$
|
242,229
|
$
|
258,064
|
$
|
270,414
|
$
|
267,832
|
$
|
246,931
|
$
|
265,696
|
||||||||||||||
|
Average
assets
|
320,475
|
316,004
|
331,905
|
353,056
|
349,542
|
322,753
|
347,310
|
|||||||||||||||||||||
|
Average
deposits
|
198,649
|
206,765
|
210,764
|
214,801
|
208,912
|
205,348
|
200,131
|
|||||||||||||||||||||
|
Loan
volume
|
37,070
|
46,030
|
42,879
|
47,026
|
49,368
|
125,978
|
159,309
|
|||||||||||||||||||||
|
Employees
at end of period
|
49,748
|
49,989
|
49,693
|
49,824
|
51,056
|
49,748
|
51,056
|
|||||||||||||||||||||
|
(1)
|
Represents
the difference between mortgage loan premium amortization recorded
by the
Retail Banking Group and the amount recognized in the Company's
Consolidated Statements of Income. For management reporting
purposes, certain mortgage loans that are held in portfolio by
the Retail
Banking Group are treated as if they are purchased from the Home
Loans
Group. Since the cost basis of these loans includes an assumed
profit factor paid to the Home Loans Group, the amortization of
loan
premiums recorded by the Retail Banking Group reflects this assumed
profit
factor and must therefore be eliminated as a reconciling
adjustment.
|
|
(2)
|
Represents
the difference between gain from mortgage loans recorded by the
Home Loans
Group and gain from mortgage loans recognized in the Company's
Consolidated Statements of Income.
|
|
(3)
|
Represents
the tax effect of reconciling adjustments.
|
|
(4)
|
Represents
the inter-segment offset for inter-segment loan premiums that the
Retail
Banking Group recognized upon transfer of portfolio loans from
the Home
Loans Group.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||||||||||||||||||
|
Sept.
30, 2007
|
June
30, 2007
|
Sept.
30, 2006
|
||||||||||||||||||||||||||||||||||
|
Interest
|
Interest
|
Interest
|
||||||||||||||||||||||||||||||||||
|
Income/
|
Income/
|
Income/
|
||||||||||||||||||||||||||||||||||
|
Balance
|
Rate
|
Expense
|
Balance
|
Rate
|
Expense
|
Balance
|
Rate
|
Expense
|
||||||||||||||||||||||||||||
|
Average
Balances and Weighted Average Interest Rates
|
||||||||||||||||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||||||||||||||
|
Interest-earning
assets(1):
|
||||||||||||||||||||||||||||||||||||
|
Federal
funds sold and securities
purchased
under
|
||||||||||||||||||||||||||||||||||||
|
agreements
to resell
|
$
|
4,349
|
5.43 | % |
$
|
60
|
$
|
3,964
|
5.39 | % |
$
|
53
|
$
|
5,085
|
5.38 | % |
$
|
70
|
||||||||||||||||||
|
Trading
assets
|
4,509
|
9.54
|
108
|
4,995
|
8.67
|
108
|
6,264
|
8.92
|
140
|
|||||||||||||||||||||||||||
|
Available-for-sale
securities(2)
|
28,536 | 5.49 | 392 | 26,559 | 5.28 | 351 | 28,398 | 5.33 | 379 | |||||||||||||||||||||||||||
|
Loans
held for sale
|
13,344
|
7.41
|
248
|
26,225
|
6.43
|
421
|
25,667
|
6.75
|
435
|
|||||||||||||||||||||||||||
|
Loans
held in portfolio:
|
||||||||||||||||||||||||||||||||||||
|
Loans
secured by real estate:
|
||||||||||||||||||||||||||||||||||||
|
Home
loans(3)(4)
|
97,398
|
6.48
|
1,579
|
90,818
|
6.44
|
1,462
|
123,355
|
5.94
|
1,830
|
|||||||||||||||||||||||||||
|
Home
equity loans and lines
of
credit(4)
|
57,469
|
7.56
|
1,094
|
54,431
|
7.59
|
1,031
|
52,646
|
7.53
|
998
|
|||||||||||||||||||||||||||
|
Subprime
mortgage channel(5)
|
20,405
|
6.63
|
338
|
20,152
|
6.80
|
343
|
20,207
|
6.26
|
316
|
|||||||||||||||||||||||||||
|
Home
construction(6)
|
2,056
|
6.90
|
35
|
2,043
|
6.72
|
34
|
2,059
|
6.41
|
33
|
|||||||||||||||||||||||||||
|
Multi-family
|
30,058
|
6.63
|
498
|
29,419
|
6.63
|
488
|
27,100
|
6.42
|
435
|
|||||||||||||||||||||||||||
|
Other
real estate
|
7,418
|
6.99
|
131
|
6,843
|
7.03
|
120
|
5,696
|
6.76
|
98
|
|||||||||||||||||||||||||||
|
Total
loans secured by real estate
|
214,804
|
6.83
|
3,675
|
203,706
|
6.83
|
3,478
|
231,063
|
6.41
|
3,710
|
|||||||||||||||||||||||||||
|
Consumer:
|
||||||||||||||||||||||||||||||||||||
|
Credit
card
|
10,332
|
10.28
|
268
|
10,101
|
10.44
|
263
|
9,058
|
11.39
|
260
|
|||||||||||||||||||||||||||
|
Other
|
233
|
14.83
|
8
|
254
|
12.44
|
8
|
284
|
12.57
|
9
|
|||||||||||||||||||||||||||
|
Commercial
|
1,979
|
8.25
|
41
|
1,943
|
7.73
|
37
|
1,760
|
7.33
|
33
|
|||||||||||||||||||||||||||
|
Total
loans held in portfolio
|
227,348
|
7.01
|
3,992
|
216,004
|
7.02
|
3,786
|
242,165
|
6.61
|
4,012
|
|||||||||||||||||||||||||||
|
Other
|
5,177
|
4.33
|
56
|
2,089
|
5.47
|
29
|
5,248
|
5.21
|
69
|
|||||||||||||||||||||||||||
|
Total
interest-earning assets
|
283,263
|
6.84
|
4,856
|
279,836
|
6.79
|
4,748
|
312,827
|
6.51
|
5,105
|
|||||||||||||||||||||||||||
|
Noninterest-earning
assets:
|
||||||||||||||||||||||||||||||||||||
|
Mortgage
servicing rights
|
6,901
|
6,782
|
7,201
|
|||||||||||||||||||||||||||||||||
|
Goodwill
|
9,056
|
9,054
|
8,339
|
|||||||||||||||||||||||||||||||||
|
Other
assets
|
21,255
|
20,332
|
21,175
|
|||||||||||||||||||||||||||||||||
|
Total
assets
|
$
|
320,475
|
$
|
316,004
|
$
|
349,542
|
||||||||||||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing
liabilities:
|
||||||||||||||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||||||||||||||
|
Interest-bearing
checking deposits
|
$
|
28,492
|
2.36
|
169
|
$
|
30,373
|
2.51
|
190
|
$
|
34,866
|
2.90
|
255
|
||||||||||||||||||||||||
|
Savings
and money market deposits
|
57,377
|
3.32
|
480
|
58,969
|
3.33
|
490
|
49,144
|
3.19
|
396
|
|||||||||||||||||||||||||||
|
Time
deposits
|
80,719
|
4.92
|
1,001
|
84,330
|
4.96
|
1,043
|
90,001
|
4.76
|
1,088
|
|||||||||||||||||||||||||||
|
Total
interest-bearing deposits
|
166,588
|
3.93
|
1,650
|
173,672
|
3.98
|
1,723
|
174,011
|
3.95
|
1,739
|
|||||||||||||||||||||||||||
|
Federal
funds purchased and
commercial
paper
|
2,991
|
5.40
|
41
|
2,169
|
5.36
|
29
|
7,382
|
5.31
|
99
|
|||||||||||||||||||||||||||
|
Securities
sold under agreements
to
repurchase
|
8,617
|
5.34
|
116
|
8,416
|
5.35
|
112
|
15,676
|
5.39
|
216
|
|||||||||||||||||||||||||||
|
Advances
from Federal Home
Loan
Banks
|
34,128
|
5.39
|
464
|
22,063
|
5.36
|
295
|
52,886
|
5.28
|
711
|
|||||||||||||||||||||||||||
|
Other
|
40,567
|
5.60
|
571
|
39,886
|
5.57
|
555
|
27,815
|
5.59
|
393
|
|||||||||||||||||||||||||||
|
Total
interest-bearing liabilities
|
252,891
|
4.46
|
2,842
|
246,206
|
4.42
|
2,714
|
277,770
|
4.48
|
3,158
|
|||||||||||||||||||||||||||
|
Noninterest-bearing
sources:
|
||||||||||||||||||||||||||||||||||||
|
Noninterest-bearing
deposits
|
32,061
|
33,093
|
34,901
|
|||||||||||||||||||||||||||||||||
|
Other
liabilities
|
8,584
|
9,610
|
8,765
|
|||||||||||||||||||||||||||||||||
|
Minority
interests
|
2,945
|
2,659
|
1,959
|
|||||||||||||||||||||||||||||||||
|
Stockholders'
equity
|
23,994
|
24,436
|
26,147
|
|||||||||||||||||||||||||||||||||
|
Total
liabilities and
stockholders'
equity
|
$
|
320,475
|
$
|
316,004
|
$
|
349,542
|
||||||||||||||||||||||||||||||
|
Net
interest spread and net
interest
income
|
2.38
|
$
|
2,014
|
2.37
|
$
|
2,034
|
2.03
|
$
|
1,947
|
|||||||||||||||||||||||||||
|
Impact
of noninterest-bearing sources
|
0.48
|
0.53
|
0.50
|
|||||||||||||||||||||||||||||||||
|
Net
interest margin
|
2.86
|
2.90
|
2.53
|
|||||||||||||||||||||||||||||||||
|
(1)
|
Nonaccrual
assets and related income, if any, are included in their respective
categories.
|
|
(2)
|
The
average balance and yield are based on average amortized cost
balances.
|
|
(3)
|
Capitalized
interest recognized in earnings that resulted from negative amortization
within the Option ARM portfolio totaled $345 million, $344 million
and
$296 million for the three months ended September 30, 2007, June
30, 2007
and September 30, 2006.
|
|
(4)
|
Excludes
home loans and home equity loans and lines of credit in the subprime
mortgage channel.
|
|
(5)
|
Represents
mortgage loans purchased from recognized subprime lenders and mortgage
loans originated under the Long Beach Mortgage name and held in
the
investment portfolio.
|
|
(6)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
Washington
Mutual, Inc.
|
||||||||||||
|
Selected
Financial Information
|
||||||||||||
|
(dollars
in millions)
|
||||||||||||
|
(unaudited)
|
|
Nine
Months Ended
|
||||||||||||||||||||||||
|
Sept.
30, 2007
|
Sept.
30, 2006
|
|||||||||||||||||||||||
|
Interest
|
Interest
|
|||||||||||||||||||||||
|
Income/
|
Income/
|
|||||||||||||||||||||||
|
Balance
|
Rate
|
Expense
|
Balance
|
Rate
|
Expense
|
|||||||||||||||||||
|
Average
Balances and Weighted Average Interest Rates
|
||||||||||||||||||||||||
|
Assets
|
||||||||||||||||||||||||
|
Interest-earning
assets(1):
|
||||||||||||||||||||||||
|
Federal
funds sold and securities purchased under
|
||||||||||||||||||||||||
|
agreements
to resell
|
$
|
4,083
|
5.41 | % |
$
|
165
|
$
|
4,422
|
5.04 | % |
$
|
169
|
||||||||||||
|
Trading
assets
|
5,029
|
8.73
|
329
|
8,831
|
7.60
|
503
|
||||||||||||||||||
|
Available-for-sale
securities(2)
|
26,593 | 5.39 | 1,075 | 27,160 | 5.24 | 1,068 | ||||||||||||||||||
|
Loans
held for sale
|
24,924
|
6.59
|
1,232
|
26,659
|
6.45
|
1,292
|
||||||||||||||||||
|
Loans
held in portfolio:
|
||||||||||||||||||||||||
|
Loans
secured by real estate:
|
||||||||||||||||||||||||
|
Home
loans(3)(4)
|
95,194
|
6.46
|
4,611
|
122,232
|
5.76
|
5,282
|
||||||||||||||||||
|
Home
equity loans and lines of credit(4)
|
54,988
|
7.57
|
3,114
|
52,068
|
7.26
|
2,830
|
||||||||||||||||||
|
Subprime
mortgage channel(5)
|
20,389
|
6.70
|
1,025
|
19,939
|
6.14
|
918
|
||||||||||||||||||
|
Home
construction(6)
|
2,053
|
6.72
|
103
|
2,062
|
6.41
|
99
|
||||||||||||||||||
|
Multi-family
|
29,768
|
6.61
|
1,476
|
26,388
|
6.19
|
1,226
|
||||||||||||||||||
|
Other
real estate
|
7,011
|
7.02
|
368
|
5,482
|
6.85
|
284
|
||||||||||||||||||
|
Total
loans secured by real estate
|
209,403
|
6.82
|
10,697
|
228,171
|
6.22
|
10,639
|
||||||||||||||||||
|
Consumer:
|
||||||||||||||||||||||||
|
Credit
card
|
10,443
|
10.78
|
842
|
8,442
|
11.16
|
704
|
||||||||||||||||||
|
Other
|
251
|
13.37
|
25
|
499
|
10.84
|
40
|
||||||||||||||||||
|
Commercial
|
1,910
|
7.98
|
114
|
1,925
|
6.67
|
97
|
||||||||||||||||||
|
Total
loans held in portfolio
|
222,007
|
7.02
|
11,678
|
239,037
|
6.41
|
11,480
|
||||||||||||||||||
|
Other
|
3,585
|
5.01
|
134
|
5,191
|
4.74
|
185
|
||||||||||||||||||
|
Total
interest-earning assets
|
286,221
|
6.81
|
14,613
|
311,300
|
6.30
|
14,697
|
||||||||||||||||||
|
Noninterest-earning
assets:
|
||||||||||||||||||||||||
|
Mortgage
servicing rights
|
6,665
|
8,151
|
||||||||||||||||||||||
|
Goodwill
|
9,054
|
8,313
|
||||||||||||||||||||||
|
Other
assets
|
20,813
|
19,546
|
||||||||||||||||||||||
|
Total
assets
|
$
|
322,753
|
$
|
347,310
|
||||||||||||||||||||
|
Liabilities
|
||||||||||||||||||||||||
|
Interest-bearing
liabilities:
|
||||||||||||||||||||||||
|
Deposits:
|
||||||||||||||||||||||||
|
Interest-bearing
checking deposits
|
$
|
30,216
|
2.50
|
566
|
$
|
37,615
|
2.59
|
728
|
||||||||||||||||
|
Savings
and money market deposits
|
57,079
|
3.31
|
1,413
|
47,367
|
2.81
|
997
|
||||||||||||||||||
|
Time
deposits
|
85,520
|
4.95
|
3,166
|
80,970
|
4.42
|
2,695
|
||||||||||||||||||
|
Total
interest-bearing deposits
|
172,815
|
3.98
|
5,145
|
165,952
|
3.55
|
4,420
|
||||||||||||||||||
|
Federal
funds purchased and commercial paper
|
2,999
|
5.43
|
122
|
7,537
|
4.92
|
279
|
||||||||||||||||||
|
Securities
sold under agreements to repurchase
|
9,698
|
5.40
|
392
|
16,294
|
4.95
|
612
|
||||||||||||||||||
|
Advances
from Federal Home Loan Banks
|
30,740
|
5.38
|
1,237
|
60,197
|
4.84
|
2,203
|
||||||||||||||||||
|
Other
|
37,782
|
5.61
|
1,586
|
26,901
|
5.23
|
1,060
|
||||||||||||||||||
|
Total
interest-bearing liabilities
|
254,034
|
4.46
|
8,482
|
276,881
|
4.11
|
8,574
|
||||||||||||||||||
|
Noninterest-bearing
sources:
|
||||||||||||||||||||||||
|
Noninterest-bearing
deposits
|
32,533
|
34,179
|
||||||||||||||||||||||
|
Other
liabilities
|
9,222
|
8,445
|
||||||||||||||||||||||
|
Minority
interests
|
2,686
|
1,497
|
||||||||||||||||||||||
|
Stockholders'
equity
|
24,278
|
26,308
|
||||||||||||||||||||||
|
Total
liabilities and stockholders' equity
|
$
|
322,753
|
$
|
347,310
|
||||||||||||||||||||
|
Net
interest spread and net interest income
|
2.35
|
$
|
6,131
|
2.19
|
$
|
6,123
|
||||||||||||||||||
|
Impact
of noninterest-bearing sources
|
0.50
|
0.45
|
||||||||||||||||||||||
|
Net
interest margin
|
2.85
|
2.64
|
||||||||||||||||||||||
|
(1)
|
Nonaccrual
assets and related income, if any, are included in their respective
categories.
|
|
(2)
|
The
average balance and yield are based on average amortized cost
balances.
|
|
(3)
|
Capitalized
interest recognized in earnings that resulted from negative amortization
within the Option ARM portfolio totaled $1.05 billion and $735
million for
the nine months ended September 30, 2007 and September 30,
2006.
|
|
(4)
|
Excludes
home loans and home equity loans and lines of credit in the subprime
mortgage channel.
|
|
(5)
|
Represents
mortgage loans purchased from recognized subprime lenders and mortgage
loans originated under the Long Beach Mortgage name and held in
the
investment portfolio.
|
|
(6)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
|
Change
from
June
30, 2007
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||||
|
to
Sept. 30, 2007
|
2007
|
2007
|
2007
|
2006
|
2006
|
|||||||||||||||||||
|
Deposits
|
||||||||||||||||||||||||
|
Retail
deposits:
|
||||||||||||||||||||||||
|
Checking
deposits:
|
||||||||||||||||||||||||
|
Noninterest
bearing
|
$
|
(421 | ) |
$
|
23,721
|
$
|
24,142
|
$
|
24,400
|
$
|
22,838
|
$
|
22,466
|
|||||||||||
|
Interest
bearing
|
(2,315 | ) |
27,277
|
29,592
|
31,523
|
32,723
|
33,761
|
|||||||||||||||||
|
Total
checking deposits
|
(2,736 | ) |
50,998
|
53,734
|
55,923
|
55,561
|
56,227
|
|||||||||||||||||
|
Savings
and money market deposits
|
(257 | ) |
43,360
|
43,617
|
44,058
|
41,943
|
39,481
|
|||||||||||||||||
|
Time
deposits(1)
|
2,600
|
50,740
|
48,140
|
47,262
|
46,821
|
47,361
|
||||||||||||||||||
|
Total
retail deposits
|
(393 | ) |
145,098
|
145,491
|
147,243
|
144,325
|
143,069
|
|||||||||||||||||
|
Commercial
business and other deposits
|
(2,650 | ) |
16,536
|
19,186
|
17,741
|
15,175
|
15,831
|
|||||||||||||||||
|
Brokered
deposits:
|
||||||||||||||||||||||||
|
Consumer
|
331
|
17,484
|
17,153
|
18,995
|
22,299
|
22,430
|
||||||||||||||||||
|
Institutional
|
(2,918 | ) |
8,107
|
11,025
|
17,256
|
22,339
|
18,236
|
|||||||||||||||||
|
Custodial
and escrow deposits(2)
|
(1,470 | ) |
7,055
|
8,525
|
8,974
|
9,818
|
11,316
|
|||||||||||||||||
|
Total
deposits
|
$
|
(7,100 | ) |
$
|
194,280
|
$
|
201,380
|
$
|
210,209
|
$
|
213,956
|
$
|
210,882
|
|||||||||||
|
(1)
|
Weighted
average remaining maturity of time deposits was 7 months at September
30,
2007, 8 months at June 30, 2007, 9 months at March 31, 2007 and
December
31, 2006 and 10 months at September 30, 2006.
|
|
(2)
|
Substantially
all custodial and escrow deposits reside in noninterest-bearing
checking
accounts.
|
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||||||
|
Retail
Deposit Accounts (number of accounts)
|
||||||||||||||||||||||||
|
Noninterest
bearing checking
|
10,824,548
|
10,449,887
|
9,983,313
|
9,611,706
|
9,403,072
|
|||||||||||||||||||
|
Interest
bearing checking
|
1,334,902
|
1,399,203
|
1,459,534
|
1,503,365
|
1,532,215
|
|||||||||||||||||||
|
Savings
and money market
|
7,087,311
|
6,936,870
|
6,708,784
|
6,525,772
|
6,379,068
|
|||||||||||||||||||
|
Total
transaction accounts, end of
period(1)
|
19,246,761
|
18,785,960
|
18,151,631
|
17,640,843
|
17,314,355
|
|||||||||||||||||||
|
Net
change in noninterest bearing checking accounts
|
374,661
|
466,574
|
371,607
|
208,634
|
339,614
|
|||||||||||||||||||
|
Net
change in checking accounts
|
310,360
|
406,243
|
327,776
|
179,784
|
307,433
|
|||||||||||||||||||
|
(1)
|
Transaction
accounts include retail checking, small business checking, retail
savings
and small business savings.
|
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||||||
|
Retail
Banking Stores
|
||||||||||||||||||||||||
|
Stores,
beginning of period
|
2,235
|
2,228
|
2,225
|
2,225
|
2,201
|
|||||||||||||||||||
|
Stores
opened during the quarter
|
10
|
11
|
6
|
81 | (1) |
25
|
||||||||||||||||||
|
Stores
closed during the quarter
|
(33 | ) | (4 | ) | (3 | ) | (81 | ) | (1 | ) | ||||||||||||||
|
Stores,
end of period
|
2,212
|
2,235
|
2,228
|
2,225
|
2,225
|
|||||||||||||||||||
|
(1)
|
Includes
26 retail banking stores acquired through the merger with Commercial
Capital Bancorp.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Loan
Volume
|
||||||||||||||||||||
|
Home
loans:
|
||||||||||||||||||||
|
Short-term
adjustable-rate loans(1):
|
||||||||||||||||||||
|
Option
ARMs
|
$
|
5,865
|
$
|
7,888
|
$
|
7,777
|
$
|
9,487
|
$
|
11,601
|
||||||||||
|
Other
ARMs
|
111
|
22
|
36
|
13
|
42
|
|||||||||||||||
|
Total
short-term adjustable-rate loans
|
5,976
|
7,910
|
7,813
|
9,500
|
11,643
|
|||||||||||||||
|
Medium-term
adjustable-rate loans(2)
|
10,177
|
14,953
|
13,567
|
17,323
|
16,707
|
|||||||||||||||
|
Fixed-rate
loans
|
6,176
|
8,172
|
8,824
|
7,351
|
8,818
|
|||||||||||||||
|
Total
home loan volume
|
22,329
|
31,035
|
30,204
|
34,174
|
37,168
|
|||||||||||||||
|
Home
equity loans and lines of credit
|
9,835
|
9,880
|
8,319
|
8,098
|
8,498
|
|||||||||||||||
|
Home
construction(3)
|
483
|
426
|
298
|
298
|
269
|
|||||||||||||||
|
Multi-family
|
2,856
|
3,067
|
2,663
|
2,977
|
2,186
|
|||||||||||||||
|
Other
real estate
|
1,285
|
1,246
|
1,080
|
1,182
|
983
|
|||||||||||||||
|
Total
loans secured by real estate(4)
|
36,788
|
45,654
|
42,564
|
46,729
|
49,104
|
|||||||||||||||
|
Consumer(5)
|
6
|
20
|
26
|
23
|
26
|
|||||||||||||||
|
Commercial
|
276
|
356
|
289
|
274
|
238
|
|||||||||||||||
|
Total
loan volume
|
$
|
37,070
|
$
|
46,030
|
$
|
42,879
|
$
|
47,026
|
$
|
49,368
|
||||||||||
|
Loan
Volume by Channel
|
||||||||||||||||||||
|
Retail
|
$
|
22,520
|
$
|
25,094
|
$
|
21,809
|
$
|
23,594
|
$
|
21,776
|
||||||||||
|
Wholesale
|
13,387
|
16,545
|
14,853
|
16,834
|
15,427
|
|||||||||||||||
|
Purchased
|
1,163
|
4,391
|
6,217
|
6,398
|
11,560
|
|||||||||||||||
|
Correspondent
|
-
|
-
|
-
|
200
|
605
|
|||||||||||||||
|
Total
loan volume by channel
|
$
|
37,070
|
$
|
46,030
|
$
|
42,879
|
$
|
47,026
|
$
|
49,368
|
||||||||||
|
Refinancing
Activity(6)
|
||||||||||||||||||||
|
Home
loan refinancing
|
$
|
14,722
|
$
|
22,637
|
$
|
22,552
|
$
|
25,060
|
$
|
23,993
|
||||||||||
|
Home
equity loans and lines of credit and consumer
|
143
|
157
|
550
|
599
|
689
|
|||||||||||||||
|
Home
construction loans
|
30
|
121
|
276
|
283
|
254
|
|||||||||||||||
|
Multi-family
and other real estate
|
1,225
|
1,378
|
1,131
|
2,240
|
1,398
|
|||||||||||||||
|
Total
refinancing
|
$
|
16,120
|
$
|
24,293
|
$
|
24,509
|
$
|
28,182
|
$
|
26,334
|
||||||||||
|
(1)
|
Short-term
is defined as adjustable-rate loans that reprice within one
year.
|
|
(2)
|
Medium-term
is defined as adjustable-rate loans that reprice after one
year.
|
|
(3)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
(4)
|
Includes
mortgage loans purchased from recognized subprime lenders and mortgage
loans originated under the Long Beach Mortgage name of $483 million,
$2.45
billion, $3.48 billion, $6.07 billion and $9.40 billion for the
three
months ended September 30, 2007, June 30, 2007, March 31, 2007,
December
31, 2006 and September 30, 2006.
|
|
(5)
|
Excludes
credit card loan volume.
|
|
(6)
|
Includes
loan refinancing entered into by both new and pre-existing loan
customers.
|
|
Washington
Mutual, Inc.
|
||||||||||
|
Selected
Financial Information
|
||||||||||
|
(dollars
in millions)
|
||||||||||
|
(unaudited)
|
|
Nine
Months Ended
|
||||||||
|
Sept.
30,
|
Sept.
30,
|
|||||||
|
2007
|
2006
|
|||||||
|
Loan
Volume
|
||||||||
|
Home
loans:
|
||||||||
|
Short-term
adjustable-rate loans(1):
|
||||||||
|
Option
ARMs
|
$
|
21,530
|
$
|
33,106
|
||||
|
Other
ARMs
|
170
|
3,372
|
||||||
|
Total
short-term adjustable-rate loans
|
21,700
|
36,478
|
||||||
|
Medium-term
adjustable-rate loans(2)
|
38,697
|
47,613
|
||||||
|
Fixed-rate
loans
|
23,171
|
40,119
|
||||||
|
Total
home loan volume
|
83,568
|
124,210
|
||||||
|
Home
equity loans and lines of credit
|
28,034
|
24,055
|
||||||
|
Home
construction(3)
|
1,206
|
1,183
|
||||||
|
Multi-family
|
8,585
|
6,450
|
||||||
|
Other
real estate
|
3,611
|
2,486
|
||||||
|
Total
loans secured by real estate(4)
|
125,004
|
158,384
|
||||||
|
Consumer(5)
|
52
|
111
|
||||||
|
Commercial
|
922
|
814
|
||||||
|
Total
loan volume
|
$
|
125,978
|
$
|
159,309
|
||||
|
Loan
Volume by Channel
|
||||||||
|
Retail
|
$
|
69,423
|
$
|
67,344
|
||||
|
Wholesale
|
44,785
|
47,668
|
||||||
|
Purchased
|
11,770
|
30,911
|
||||||
|
Correspondent
|
-
|
13,386
|
||||||
|
Total
loan volume by channel
|
$
|
125,978
|
$
|
159,309
|
||||
|
Refinancing
Activity(6)
|
||||||||
|
Home
loan refinancing
|
$
|
59,911
|
$
|
77,529
|
||||
|
Home
equity loans and lines of credit and consumer
|
851
|
1,066
|
||||||
|
Home
construction loans
|
426
|
1,026
|
||||||
|
Multi-family
and other real estate
|
3,734
|
4,173
|
||||||
|
Total
refinancing
|
$
|
64,922
|
$
|
83,794
|
||||
|
(1)
|
Short-term
is defined as adjustable-rate loans that reprice within one
year.
|
|
(2)
|
Medium-term
is defined as adjustable-rate loans that reprice after one
year.
|
|
(3)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
(4)
|
Includes
mortgage loans purchased from recognized subprime lenders and mortgage
loans originated under the Long Beach Mortgage name of $6.42
billion and $24.69 billion for the nine months ended September
30, 2007
and September 30, 2006.
|
|
(5)
|
Excludes
credit card loan volume.
|
|
(6)
|
Includes
loan refinancing entered into by both new and pre-existing loan
customers.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Change
from
|
||||||||||||||||||||||||
|
June
30, 2007
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
|||||||||||||||||||
|
to
Sept. 30, 2007
|
2007
|
2007
|
2007
|
2006
|
2006
|
|||||||||||||||||||
|
Loans
Held in Portfolio
|
||||||||||||||||||||||||
|
Loans
secured by real estate:
|
||||||||||||||||||||||||
|
Home:
|
||||||||||||||||||||||||
|
Short-term
adjustable-rate loans(1):
|
||||||||||||||||||||||||
|
Option
ARMs(2)
|
$
|
4,403
|
$
|
57,858
|
$
|
53,455
|
$
|
58,130
|
$
|
63,557
|
$
|
67,142
|
||||||||||||
|
Other
ARMs
|
(2,826 | ) |
10,712
|
13,538
|
13,501
|
15,091
|
16,375
|
|||||||||||||||||
|
Total
short-term adjustable-rate loans
|
1,577
|
68,570
|
66,993
|
71,631
|
78,648
|
83,517
|
||||||||||||||||||
|
Medium-term
adjustable-rate loans(3)
|
13,115
|
42,762
|
29,647
|
29,924
|
29,774
|
47,740
|
||||||||||||||||||
|
Fixed-rate
loans
|
2,308
|
11,813
|
9,505
|
9,506
|
9,782
|
9,928
|
||||||||||||||||||
|
Total
home loans
|
17,000
|
123,145
|
106,145
|
111,061
|
118,204
|
141,185
|
||||||||||||||||||
|
Home
equity loans and lines of credit
|
3,200
|
61,831
|
58,631
|
56,123
|
54,924
|
54,364
|
||||||||||||||||||
|
Home
construction(4)
|
52
|
2,110
|
2,058
|
2,071
|
2,082
|
2,077
|
||||||||||||||||||
|
Multi-family
|
1,541
|
30,831
|
29,290
|
29,515
|
30,161
|
27,407
|
||||||||||||||||||
|
Other
real estate
|
1,456
|
8,335
|
6,879
|
6,728
|
6,745
|
5,869
|
||||||||||||||||||
|
Total
loans secured by real estate(5)
|
23,249
|
226,252
|
203,003
|
205,498
|
212,116
|
230,902
|
||||||||||||||||||
|
Consumer:
|
||||||||||||||||||||||||
|
Credit
card
|
(1,122 | ) |
8,791
|
9,913
|
9,490
|
10,861
|
8,807
|
|||||||||||||||||
|
Other
|
(19 | ) |
224
|
243
|
261
|
276
|
281
|
|||||||||||||||||
|
Commercial
|
30
|
1,865
|
1,835
|
1,772
|
1,707
|
1,775
|
||||||||||||||||||
|
Total
loans held in portfolio(6)
|
22,138
|
237,132
|
214,994
|
217,021
|
224,960
|
241,765
|
||||||||||||||||||
|
Less:
allowance for loan and lease losses
|
(329 | ) | (1,889 | ) | (1,560 | ) | (1,540 | ) | (1,630 | ) | (1,550 | ) | ||||||||||||
|
Total
loans held in portfolio, net
|
$
|
21,809
|
$
|
235,243
|
$
|
213,434
|
$
|
215,481
|
$
|
223,330
|
$
|
240,215
|
||||||||||||
|
(1)
|
Short-term
adjustable-rate loans reprice within one year.
|
|
(2)
|
The
total amount by which the unpaid principal balance of Option ARM
loans
exceeded their original principal amount was $1.50 billion, $1.30
billion,
$1.12 billion, $888 million and $681 million at September 30, 2007,
June
30, 2007, March 31, 2007, December 31, 2006 and September 30,
2006.
|
|
(3)
|
Medium-term
adjustable-rate loans reprice after one year.
|
|
(4)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
(5)
|
Includes
subprime mortgage channel loans, comprising mortgage loans purchased
from
recognized subprime lenders and mortgage loans originated under
the Long
Beach Mortgage name and held in the investment portfolio as
follows:
|
|
Subprime
Mortgage Channel
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
|||||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||||||
|
Home
loans
|
$
|
17,285
|
$
|
17,602
|
$
|
17,610
|
$
|
18,725
|
$
|
20,083
|
||||||||||||||
|
Home
equity loans and lines of credit
|
2,711
|
2,855
|
2,749
|
2,042
|
1,522
|
|||||||||||||||||||
|
Total
|
$
|
19,996
|
$
|
20,457
|
$
|
20,359
|
$
|
20,767
|
$
|
21,605
|
||||||||||||||
|
(6)
|
Includes
net unamortized deferred loan origination costs of $1.33 billion,
$1.33
billion, $1.43 billion, $1.48 billion and $1.61 billion at September
30,
2007, June 30, 2007, March 31, 2007, December 31, 2006 and September
30,
2006.
|
|
Washington
Mutual, Inc.
|
||||||||||
|
Selected
Financial Information
|
||||||||||
|
(dollars
in millions)
|
||||||||||
|
(unaudited)
|
|
Weighted
|
Weighted
|
Weighted
|
||||||||||||||||||||||||||
|
Change
from
|
Average
|
Average
|
Average
|
|||||||||||||||||||||||||
|
June
30, 2007
|
Sept.
30,
|
Coupon
|
June
30,
|
Coupon
|
Sept.
30,
|
Coupon
|
||||||||||||||||||||||
|
to
Sept. 30, 2007
|
2007
|
Rate
|
2007
|
Rate
|
2006
|
Rate
|
||||||||||||||||||||||
|
Selected
Loans Secured by Real Estate
|
||||||||||||||||||||||||||||
|
Home
loans held in portfolio:
|
||||||||||||||||||||||||||||
|
Short-term
adjustable-rate loans(1):
|
||||||||||||||||||||||||||||
|
Option
ARMs
|
$
|
4,403
|
$
|
57,858
|
7.62 | % |
$
|
53,455
|
7.74 | % |
$
|
67,142
|
7.13 | % | ||||||||||||||
|
Other
ARMs
|
(2,826 | ) |
10,712
|
7.74
|
13,538
|
7.28
|
16,375
|
7.01
|
||||||||||||||||||||
|
Total
short-term
adjustable-rate
loans
|
1,577
|
68,570
|
7.64
|
66,993
|
7.65
|
83,517
|
7.11
|
|||||||||||||||||||||
|
Medium-term
adjustable-rate
loans(2)
|
13,115
|
42,762
|
6.30
|
29,647
|
5.99
|
47,740
|
5.72
|
|||||||||||||||||||||
|
Fixed-rate
loans
|
2,308
|
11,813
|
6.74
|
9,505
|
6.71
|
9,928
|
6.59
|
|||||||||||||||||||||
|
Total
home loans held
in
portfolio
|
17,000
|
123,145
|
7.09
|
106,145
|
7.10
|
141,185
|
6.60
|
|||||||||||||||||||||
|
Home
equity loans and lines of credit:
|
||||||||||||||||||||||||||||
|
Short-term
(Prime-based or
treasury-based)(1)
|
1,451
|
36,446
|
8.06
|
34,995
|
8.47
|
35,831
|
8.40
|
|||||||||||||||||||||
|
Fixed-rate
loans
|
1,749
|
25,385
|
7.69
|
23,636
|
7.68
|
18,533
|
7.16
|
|||||||||||||||||||||
|
Total
home equity loans and
lines
of credit
|
3,200
|
61,831
|
7.91
|
58,631
|
8.15
|
54,364
|
7.98
|
|||||||||||||||||||||
|
Multi-family
loans held in portfolio:
|
||||||||||||||||||||||||||||
|
Short-term
adjustable-rate loans(1):
|
||||||||||||||||||||||||||||
|
Option
ARMs
|
(569 | ) |
7,081
|
7.25
|
7,650
|
7.28
|
8,967
|
6.95
|
||||||||||||||||||||
|
Other
ARMs
|
(614 | ) |
7,296
|
6.77
|
7,910
|
6.77
|
5,858
|
6.94
|
||||||||||||||||||||
|
Total
short-term
adjustable-rate
loans
|
(1,183 | ) |
14,377
|
7.01
|
15,560
|
7.02
|
14,825
|
6.95
|
||||||||||||||||||||
|
Medium-term
adjustable-rate
loans(2)
|
2,701
|
14,591
|
6.03
|
11,890
|
5.93
|
10,906
|
5.59
|
|||||||||||||||||||||
|
Fixed-rate
loans
|
23
|
1,863
|
6.31
|
1,840
|
6.35
|
1,676
|
6.45
|
|||||||||||||||||||||
|
Total
multi-family loans held
in
portfolio
|
1,541
|
30,831
|
6.50
|
29,290
|
6.53
|
27,407
|
6.38
|
|||||||||||||||||||||
|
Total
selected loans held in
portfolio
secured
by
real
estate(3)
|
21,741
|
215,807
|
7.24
|
194,066
|
7.33
|
222,956
|
6.90
|
|||||||||||||||||||||
|
Loans
held for
sale(4)
|
(12,772 | ) |
6,227
|
6.36
|
18,999
|
6.39
|
23,387
|
6.64
|
||||||||||||||||||||
|
Total
selected loans secured by
real
estate
|
$
|
8,969
|
$
|
222,034
|
7.21
|
$
|
213,065
|
7.25
|
$
|
246,343
|
6.88
|
|||||||||||||||||
|
(1)
|
Short-term
adjustable-rate loans reprice within one year.
|
|
(2)
|
Medium-term
adjustable-rate loans reprice after one year.
|
|
(3)
|
At
September 30, 2007, June 30, 2007 and September 30, 2006, adjustable-rate
loans with lifetime caps were $175.21 billion, $158.24 billion
and $190.36
billion with a lifetime weighted average cap rate of 12.44%, 12.96%
and
12.13%.
|
|
(4)
|
Excludes
credit card and student loans.
|
|
June
30, 2007
|
Dec.
31, 2006
|
|||||||
|
to
Sept. 30, 2007
|
to
Sept. 30, 2007
|
|||||||
|
Rollforward
of Loans Held for Sale
|
||||||||
|
|
|
|
||||||
|
Balance,
beginning of period
|
$
|
19,327 |
$
|
44,970
|
||||
|
Mortgage
loans originated, purchased and transferred from held in
portfolio
|
14,370 | 73,948 | ||||||
|
Mortgage
loans transferred to held in portfolio
|
(17,004 | ) | (19,677 | ) | ||||
|
Mortgage
loans sold and
other(1)
|
(10,138 | ) | (92,768 | ) | ||||
|
Net
change in consumer loans held for sale
|
1,031
|
1,113
|
||||||
|
Balance,
end of period
|
$
|
7,586
|
$
|
7,586
|
||||
|
Rollforward
of Home Loans Held in Portfolio
|
||||||||
|
Balance,
beginning of period
|
$
|
106,145 |
$
|
118,204 | ||||
|
Loans
originated, purchased and transferred from held for sale
|
25,727 | 36,012 | ||||||
|
Loan
payments, transferred to held for sale and other
|
(8,727 | ) | (31,071 | ) | ||||
|
Balance,
end of period
|
$
|
123,145
|
$
|
123,145
|
||||
|
(1)
|
The
unpaid principal balance ("UPB") of home loans sold was $9.03 billion
and
$84.58 billion for the three and nine months ended September 30,
2007.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Detail
of Revenue from Sales and Servicing of Home Mortgage
Loans
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
|||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Gain
(loss) from home mortgage loans and originated mortgage-backed
securities, net
of hedging and risk management
instruments(1):
|
||||||||||||||||||||
|
Gain
(loss) from home mortgage loans and originated mortgage-backed
securities
|
$
|
(169 | ) |
$
|
66
|
$
|
149
|
$
|
64
|
$
|
206
|
|||||||||
|
Revaluation
gain (loss) from derivatives economically hedging loans held for
sale
|
(53 | ) |
126
|
(54 | ) |
91
|
(87 | ) | ||||||||||||
|
Gain
(loss) from home mortgage loans and
originated
mortgage-backed
securities, net of hedging and risk
management
instruments
|
(222 | ) |
192
|
95
|
155
|
119
|
||||||||||||||
|
Home
mortgage loan servicing revenue (expense):
|
||||||||||||||||||||
|
Home
mortgage loan servicing
revenue(2)
|
516
|
526
|
514
|
497
|
525
|
|||||||||||||||
|
Change
in MSR fair value due to payments on loans and other
|
(351 | ) | (401 | ) | (356 | ) | (375 | ) | (410 | ) | ||||||||||
|
Net
mortgage loan servicing revenue
|
165
|
125
|
158
|
122
|
115
|
|||||||||||||||
|
Change
in MSR fair value due to valuation inputs or assumptions
|
(201 | ) |
530
|
(96 | ) | (80 | ) | (469 | ) | |||||||||||
|
Revaluation
gain (loss) from derivatives economically hedging MSR
|
419
|
(547 | ) | (32 | ) | (33 | ) |
353
|
||||||||||||
|
Home
mortgage loan servicing revenue (expense), net of MSR
valuation
changes
and derivative risk management instruments
|
383
|
108
|
30
|
9
|
(1 | ) | ||||||||||||||
|
Total
revenue from sales and servicing of home mortgage
loans
|
$
|
161
|
$
|
300
|
$
|
125
|
$
|
164
|
$
|
118
|
||||||||||
|
Nine
Months Ended
|
||||||||||||||||||||
|
Detail
of Revenue from Sales and Servicing of Home Mortgage
Loans
|
Sept.
30,
|
Sept.
30,
|
||||||||||||||||||
|
2007
|
2006
|
|||||||||||||||||||
|
Gain
from home mortgage loans and originated
mortgage-backed
securities,
net
of hedging and risk management instruments(1):
|
||||||||||||||||||||
|
Gain
from home mortgage loans and originated mortgage-backed
securities
|
$
|
45
|
$
|
563
|
||||||||||||||||
|
Revaluation
gain from derivatives economically hedging loans held for
sale
|
20
|
17
|
||||||||||||||||||
|
Gain
from home mortgage loans and originated
mortgage-backed
securities,
net
of hedging and risk management instruments
|
65
|
580
|
||||||||||||||||||
|
Home
mortgage loan servicing revenue:
|
||||||||||||||||||||
|
Home
mortgage loan servicing
revenue(2)
|
1,557
|
1,683
|
||||||||||||||||||
|
Change
in MSR fair value due to payments on loans and other
|
(1,109 | ) | (1,279 | ) | ||||||||||||||||
|
Net
mortgage loan servicing revenue
|
448
|
404
|
||||||||||||||||||
|
Change
in MSR fair value due to valuation inputs or assumptions
|
233
|
379
|
||||||||||||||||||
|
Revaluation
loss from derivatives economically hedging MSR
|
(160 | ) | (603 | ) | ||||||||||||||||
|
Adjustment
to MSR fair value for MSR sale
|
-
|
(157 | ) | |||||||||||||||||
|
Home
mortgage loan servicing revenue, net of MSR
valuation
changes
and derivative risk management instruments
|
521
|
23
|
||||||||||||||||||
|
Total
revenue from sales and servicing of home mortgage
loans
|
$
|
586
|
$
|
603
|
||||||||||||||||
|
(1)
|
Originated
mortgage-backed securities represent available-for-sale securities
retained on the balance sheet subsequent to the securitization
of mortgage
loans that were originated by the Company.
|
|
(2)
|
Includes
contractually specified servicing fees (net of guarantee fees paid
to
government housing-sponsored enterprises, where applicable), late
charges
and loan pool expenses (the shortfall of the scheduled interest
required
to be remitted to investors and that which is collected from borrowers
upon payoff).
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
MSR
Valuation and Risk Management:
|
||||||||||||||||||||
|
Change
in MSR fair value due to valuation inputs or assumptions
|
$
|
(201 | ) |
$
|
530
|
$
|
(96 | ) |
$
|
(80 | ) |
$
|
(469 | ) | ||||||
|
Gain
(loss) on MSR risk management instruments:
|
||||||||||||||||||||
|
Revaluation
gain (loss) from derivatives
|
419
|
(547 | ) | (32 | ) | (33 | ) |
353
|
||||||||||||
|
Revaluation
gain (loss) from certain trading securities
|
4
|
(4 | ) |
4
|
(5 | ) |
39
|
|||||||||||||
|
Loss
from certain available-for-sale securities
|
-
|
-
|
-
|
-
|
(1 | ) | ||||||||||||||
|
Total
gain (loss) on MSR risk management instruments
|
423
|
(551 | ) | (28 | ) | (38 | ) |
391
|
||||||||||||
|
Total
changes in MSR valuation and risk management
|
$
|
222
|
$
|
(21 | ) |
$
|
(124 | ) |
$
|
(118 | ) |
$
|
(78 | ) | ||||||
|
Nine
Months Ended
|
||||||||||||||||||||
|
Sept.
30,
|
Sept.
30,
|
|||||||||||||||||||
|
2007
|
2006
|
|||||||||||||||||||
|
MSR
Valuation and Risk Management(1):
|
||||||||||||||||||||
|
Change
in MSR fair value due to valuation inputs or assumptions
|
$
|
233
|
$
|
379
|
||||||||||||||||
|
Loss
on MSR risk management instruments:
|
||||||||||||||||||||
|
Revaluation
loss from derivatives
|
(160 | ) | (603 | ) | ||||||||||||||||
|
Revaluation
gain (loss) from certain trading securities
|
4
|
(50 | ) | |||||||||||||||||
|
Loss
from certain available-for-sale securities
|
-
|
(1 | ) | |||||||||||||||||
|
Total
loss on MSR risk management instruments
|
(156 | ) | (654 | ) | ||||||||||||||||
|
Total
changes in MSR valuation and risk management
|
$
|
77
|
$
|
(275 | ) | |||||||||||||||
|
(1)
|
Excludes
$157 million downward adjustment to MSR fair value recognized in
the nine
months ended September 30, 2006.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Rollforward
of Mortgage
Servicing Rights(1)
|
||||||||||||||||||||
|
Balance,
beginning of period
|
$
|
7,231
|
$
|
6,507
|
$
|
6,193
|
$
|
6,288
|
$
|
9,162
|
||||||||||
|
Home
loans:
|
||||||||||||||||||||
|
Additions
|
116
|
592
|
760
|
357
|
533
|
|||||||||||||||
|
Change
in MSR fair value due to payments on loans and other
|
(351 | ) | (401 | ) | (356 | ) | (375 | ) | (410 | ) | ||||||||||
|
Change
in MSR fair value due to valuation inputs or
|
||||||||||||||||||||
|
assumptions
|
(201 | ) |
530
|
(96 | ) | (80 | ) | (469 | ) | |||||||||||
|
Sale
of MSR
|
-
|
-
|
-
|
1
|
(2,527 | ) | ||||||||||||||
|
Net
change in commercial real estate MSR
|
(1 | ) |
3
|
6
|
2
|
(1 | ) | |||||||||||||
|
Balance,
end of period
|
$
|
6,794
|
$
|
7,231
|
$
|
6,507
|
$
|
6,193
|
$
|
6,288
|
||||||||||
|
Rollforward
of Mortgage Loans Serviced for Others
|
||||||||||||||||||||
|
Balance,
beginning of period
|
$
|
474,867
|
$
|
467,782
|
$
|
444,696
|
$
|
439,208
|
$
|
570,352
|
||||||||||
|
Home
loans:
|
||||||||||||||||||||
|
Additions
|
8,700
|
29,949
|
44,550
|
25,833
|
29,899
|
|||||||||||||||
|
Sale
of servicing
|
-
|
-
|
-
|
-
|
(141,842 | ) | ||||||||||||||
|
Loan
payments and other
|
(20,716 | ) | (24,213 | ) | (22,469 | ) | (20,744 | ) | (19,288 | ) | ||||||||||
|
Net
change in commercial real estate loans
|
585
|
1,349
|
1,005
|
399
|
87
|
|||||||||||||||
|
Balance,
end of period
|
$
|
463,436
|
$
|
474,867
|
$
|
467,782
|
$
|
444,696
|
$
|
439,208
|
||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Total
Servicing Portfolio
|
||||||||||||||||||||
|
Mortgage
loans serviced for others
|
$
|
463,436
|
$
|
474,867
|
$
|
467,782
|
$
|
444,696
|
$
|
439,208
|
||||||||||
|
Consumer
loans serviced for others
|
16,078
|
14,745
|
13,645
|
12,415
|
13,112
|
|||||||||||||||
|
Servicing
on retained MBS without MSR
|
980
|
1,023
|
1,082
|
1,140
|
1,199
|
|||||||||||||||
|
Servicing
on owned loans
|
232,392
|
218,122
|
226,217
|
251,766
|
245,925
|
|||||||||||||||
|
Subservicing
portfolio
|
418
|
439
|
465
|
84,797
|
137,089
|
|||||||||||||||
|
Total
servicing portfolio
|
$
|
713,304
|
$
|
709,196
|
$
|
709,191
|
$
|
794,814
|
$
|
836,533
|
||||||||||
|
September
30, 2007
|
||||||||||||||||||||
|
Unpaid
|
Weighted
|
|||||||||||||||||||
|
Principal
|
Average
|
|||||||||||||||||||
|
Balance
|
Servicing
Fee
|
|||||||||||||||||||
|
(in
basis points,
|
||||||||||||||||||||
|
Mortgage
Loans Serviced for Others by Loan Type
|
annualized)
|
|||||||||||||||||||
|
Agency
|
$
|
247,878
|
31
|
|||||||||||||||||
|
Private
|
183,409
|
57
|
||||||||||||||||||
|
Subprime
mortgage channel-home
|
32,149
|
51
|
||||||||||||||||||
|
Total
mortgage loans serviced for others(2)
|
$
|
463,436
|
43
|
|||||||||||||||||
|
(1)
|
MSR
as a percentage of mortgage loans serviced for others was 1.47%,
1.52%,
1.39%, 1.39% and 1.43% at September 30, 2007, June 30, 2007, March
31,
2007, December 31, 2006 and September 30, 2006.
|
|
(2)
|
Weighted
average coupon rate was 6.33% at September 30, 2007.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Quarter
Ended
|
||||||||||||||||||||
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Allowance
for Loan and Lease Losses
|
||||||||||||||||||||
|
Balance,
beginning of quarter
|
$
|
1,560
|
$
|
1,540
|
$
|
1,630
|
$
|
1,550
|
$
|
1,663
|
||||||||||
|
Allowance
transferred to loans held for sale
|
(217 | ) | (81 | ) | (148 | ) | (158 | ) | (125 | ) | ||||||||||
|
Allowance
acquired through business combinations/other
|
-
|
-
|
7
|
30
|
-
|
|||||||||||||||
|
Provision
for loan and lease losses
|
967
|
372
|
234
|
344
|
166
|
|||||||||||||||
|
2,310
|
1,831
|
1,723
|
1,766
|
1,704
|
||||||||||||||||
|
Loans
charged off:
|
||||||||||||||||||||
|
Loans
secured by real estate:
|
||||||||||||||||||||
|
Home
loans(1)
|
(52 | ) | (21 | ) | (35 | ) | (16 | ) | (12 | ) | ||||||||||
|
Home
equity loans and lines of credit(1)
|
(104 | ) | (55 | ) | (29 | ) | (13 | ) | (8 | ) | ||||||||||
|
Subprime
mortgage channel(2)
|
(146 | ) | (103 | ) | (40 | ) | (52 | ) | (47 | ) | ||||||||||
|
Home
construction(3)
|
-
|
(1 | ) |
-
|
(4 | ) | (3 | ) | ||||||||||||
|
Other
real estate
|
(1 | ) | (1 | ) |
-
|
(1 | ) | (2 | ) | |||||||||||
|
Total
loans secured by real estate
|
(303 | ) | (181 | ) | (104 | ) | (86 | ) | (72 | ) | ||||||||||
|
Consumer:
|
||||||||||||||||||||
|
Credit
card
|
(120 | ) | (106 | ) | (96 | ) | (68 | ) | (98 | ) | ||||||||||
|
Other
|
(2 | ) | (2 | ) | (3 | ) | (3 | ) | (3 | ) | ||||||||||
|
Commercial
|
(20 | ) | (15 | ) | (9 | ) | (9 | ) | (6 | ) | ||||||||||
|
Total
loans charged off
|
(445 | ) | (304 | ) | (212 | ) | (166 | ) | (179 | ) | ||||||||||
|
Recoveries
of loans previously charged off:
|
||||||||||||||||||||
|
Loans
secured by real estate:
|
||||||||||||||||||||
|
Home
loans(1)
|
1
|
1
|
1
|
-
|
-
|
|||||||||||||||
|
Home
equity loans and lines of credit(1)
|
3
|
3
|
3
|
2
|
2
|
|||||||||||||||
|
Subprime
mortgage channel(2)
|
1
|
11
|
1
|
4
|
-
|
|||||||||||||||
|
Other
real estate
|
2
|
-
|
-
|
-
|
-
|
|||||||||||||||
|
Total
loans secured by real estate
|
7
|
15
|
5
|
6
|
2
|
|||||||||||||||
|
Consumer:
|
||||||||||||||||||||
|
Credit
card
|
14
|
15
|
16
|
18
|
16
|
|||||||||||||||
|
Other
|
-
|
-
|
6
|
3
|
4
|
|||||||||||||||
|
Commercial
|
3
|
3
|
2
|
3
|
3
|
|||||||||||||||
|
Total
recoveries of loans previously charged off
|
24
|
33
|
29
|
30
|
25
|
|||||||||||||||
|
Net
charge-offs
|
(421 | ) | (271 | ) | (183 | ) | (136 | ) | (154 | ) | ||||||||||
|
Balance,
end of quarter
|
$
|
1,889
|
$
|
1,560
|
$
|
1,540
|
$
|
1,630
|
$
|
1,550
|
||||||||||
|
Net
charge-offs (annualized) as a percentage
|
||||||||||||||||||||
|
of
average loans held in portfolio
|
0.74 | % | 0.50 | % | 0.33 | % | 0.23 | % | 0.26 | % | ||||||||||
|
Allowance
as a percentage of loans held in portfolio
|
0.80
|
0.73
|
0.71
|
0.72
|
0.64
|
|||||||||||||||
|
(1)
|
Excludes
home loans and home equity loans and lines of credit in the subprime
mortgage channel.
|
|
(2)
|
Represents
mortgage loans purchased from recognized subprime lenders and mortgage
loans originated under the Long Beach Mortgage name and held in
the
investment portfolio.
|
|
(3)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
Washington
Mutual, Inc.
|
|
Selected
Financial Information
|
|
(dollars
in millions)
|
|
(unaudited)
|
|
Sept.
30,
|
June
30,
|
Mar.
31,
|
Dec.
31,
|
Sept.
30,
|
||||||||||||||||
|
2007
|
2007
|
2007
|
2006
|
2006
|
||||||||||||||||
|
Nonperforming
Assets
|
||||||||||||||||||||
|
Nonaccrual
loans(1)(2):
|
||||||||||||||||||||
|
Loans
secured by real estate:
|
||||||||||||||||||||
|
Home
loans(3)
|
$
|
1,452
|
$
|
991
|
$
|
690
|
$
|
640
|
$
|
568
|
||||||||||
|
Home
equity loans and lines of credit(3)
|
533
|
378
|
297
|
231
|
162
|
|||||||||||||||
|
Subprime
mortgage channel(4)
|
2,356
|
1,707
|
1,503
|
1,283
|
1,121
|
|||||||||||||||
|
Home
construction(5)
|
44
|
47
|
41
|
27
|
35
|
|||||||||||||||
|
Multi-family
|
120
|
69
|
60
|
46
|
31
|
|||||||||||||||
|
Other
real estate
|
49
|
52
|
52
|
51
|
53
|
|||||||||||||||
|
Total
nonaccrual loans secured by real estate
|
4,554
|
3,244
|
2,643
|
2,278
|
1,970
|
|||||||||||||||
|
Consumer
|
1
|
1
|
1
|
1
|
1
|
|||||||||||||||
|
Commercial
|
22
|
30
|
28
|
16
|
16
|
|||||||||||||||
|
Total
nonaccrual loans held in portfolio
|
4,577
|
3,275
|
2,672
|
2,295
|
1,987
|
|||||||||||||||
|
Foreclosed
assets(6)
|
874
|
750
|
587
|
480
|
405
|
|||||||||||||||
|
Total
nonperforming assets(7)
|
$
|
5,451
|
$
|
4,025
|
$
|
3,259
|
$
|
2,775
|
$
|
2,392
|
||||||||||
|
Total
nonperforming assets
|
||||||||||||||||||||
|
as
a percentage of total assets
|
1.65 | % | 1.29 | % | 1.02 | % | 0.80 | % | 0.69 | % | ||||||||||
|
(1)
|
Nonaccrual
loans held for sale, which are excluded from the nonaccrual balances
presented above, were $7 million, $171 million, $195 million, $185
million
and $129 million at September 30, 2007, June 30, 2007, March 31,
2007,
December 31, 2006 and September 30, 2006. Loans held for sale
are accounted for at lower of aggregate cost or fair value, with
valuation
changes included as adjustments to noninterest income.
|
|
(2)
|
Credit
card loans are exempt under regulatory rules from being classified
as
nonaccrual because they are charged off when they are determined
to be
uncollectible, or by the end of the month in which the account
becomes 180
days past due.
|
|
(3)
|
Excludes
home loans and home equity loans and lines of credit in the subprime
mortgage channel.
|
|
(4)
|
Represents
mortgage loans purchased from recognized subprime lenders and mortgage
loans originated under the Long Beach Mortgage name and held in
the
investment portfolio.
|
|
(5)
|
Represents
loans to builders for the purpose of financing the acquisition,
development and construction of single-family residences for sale
and
construction loans made directly to the intended occupant of a
single-family residence.
|
|
(6)
|
Foreclosed
real estate securing Government National Mortgage Association (“GNMA”)
loans of $46 million, $49 million, $72 million, $99 million and
$129
million at September 30, 2007, June 30, 2007, March 31, 2007, December
31,
2006 and September 30, 2006 have been excluded. These assets
are fully collectible as the corresponding GNMA loans are insured
by the
Federal Housing Administration (“FHA”) or guaranteed by the Department of
Veterans Affairs (“VA”).
|
|
(7)
|
Excludes
accruing restructured loans of $287 million, $285 million, $355
million,
$330 million and $331 million at September 30, 2007, June 30, 2007,
March
31, 2007, December 31, 2006 and September 30,
2006.
|